COMMISSIONER OF INCOME TAX Vs. RAGHUNATH MURTI

JUDGEMENT

(1.) THIS appeal is in respect of the asst. yr. 1998 -99 and is directed against the order of the Tribunal passed on 23rd June, 2006 in ITA No. 1077/Del/2002.

(2.) IN this appeal, the Revenue seeks to raise the following questions:

(3.) WITH regard to the proposed question (a), the factual background is that the assessee in his original return had declared an income of Rs. 26,81,110. This return was filed on 26th June, 1988. A revised return was filed on 16th Aug., 1999 and the income returned was shown at Rs. 16,64,000. The assessee had revised the returned income because the assessee had refunded a sum of Rs. 10,17,112 to his employer company (M/s Alcatel Modi Network Systems Ltd.). The said amount was refunded because the same was found to be excess amount paid to the assessee by way of remuneration. This resulted in the assessee revising his salary income to Rs. 8,58,217 as against the original returned salary income of Rs. 18,75,329. As per the Revenue, the refund of the said sum of Rs. 10,17,112 cannot be treated as excess salary paid once the same had accrued to the assessee in the relevant year. The AO, consequently, held that the refund of the said amount was not liable to be treated as reduction in the salary retrospectively.