COMMISSIONER OF INCOME TAX Vs. R. LAKSHMI NARAYANAN

JUDGEMENT

(1.) THIS appeal has been filed by the Revenue by formulating the following substantial questions of law :

(2.) THE statement of facts proceeds as follows : The assessee is the chairman and managing director of M/s Hi Tech Arai Ltd. As per the board meeting dt. 30th June, 1995, the assessee was entitled to the commission for a fixed percentage of the profits. The AO found that the commission was earned during the asst. yr. 1996 -97 and therefore, brought it to tax for the said assessment year. On appeal by the assessee, the CIT(A) found that the profit was finalised and approved only in the following year relevant to the asst. yr. 1997 -98 and allowed the appeal filed by the assessee by finding that the amount was so taxable only during the asst. yr. 1997 -98. On appeal by the Revenue, the Tribunal also confirmed the view arrived by the CIT(A).

(3.) WE have heard the argument of the learned Counsel and perused the materials on record.