The Commissioner Of Income Tax, Central Iii, Mumbai v. Excel Industries Limited

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL (L) NO.1183 OF 2011 The Commissioner of Income Tax, Central III, Mumbai..Appellant. Versus Excel Industries Limited..Respondent. Mr.D.K. Kamwal for the appellant.Mr.Percy J. Pardiwala, Senior Advocate with Ms.Vasanti B. Patel for the respondent. CORAM : J.P. Devadhar &A.R. Joshi, JJ. DATE : 25[th] November 2011 P.C. : 1.Whether the advance license and the DEPB benefits receivable by the assessee are liable to be assessed to tax in the year in which the license is granted to the licensee or liable to be taxed in the year in which the benefits actually accrue after the imports are effected, is the question raised in this appeal. 2.The Income Tax Appellate Tribunal following its decision in the case of Jamshri Ranjitsinghji Spinning & Weaving Mills Limited reported in 41 ITD 142 held that the said amounts are liable to be taxed in the year in which the benefits actually accrue to the assessee and not in the year in which the license is granted. This Court in the case of Commissioner of Income Tax V/s. M/s.Mafatlal Industries Limited, being Income Tax Appeal no.424 of 2009 decided on 22[nd] September 2009 has upheld the decision of the Income Tax Appellate Tribunal in the case of Jamshri Ranjitsinghji Spinning & Weaving Mills Limited (supra). 3.In this view of the matter, we see no merit to entertain this appeal. The appeal is accordingly dismissed with no order as to costs. (A.R. Joshi, J.) (J.P. Devadhar, J.)