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Judgment
The assessee is aggrieved by an order dated 30-9-2006 passed by the income tax Appellate Tribunal, Delhi Bench ''E'' in ITA No. 2098/Del/2003 relevant for the assessment year 1999-2000. The assessee had entered into an agreement on 31-3-1998 and was given something called pre-joining bonus. It is mentioned in the agreement that upon the assessee agreeing to leave the previous employment expeditiously and undertaking to take up employment with M/s Birla Global Finance Ltd., it was agreed that a sum of Rs. 15 lakhs would be paid to the assessee within three months of receipt of the confirmation. The offer was accepted by the assessee on the same date but the pre-joining bonus of Rs. 15 lakhs was received on 20-10-1998.
The question that arose before the Assessing Officer was whether the amount is liable to tax in the assessment year 1998-99 or 1999-2000. According to the assessee, he was liable to tax in the assessment year 1999-2000 because the pre-joining it was received by him in the previous year relevant to that assessment year. This view of the Assessing Officer was accepted by the Commissioner (Appeals) as well as by the Tribunal.
There is nothing to suggest that the assessee maintained its account on an accrual basis. That being so, the amount having been received in the previous year relevant to the assessment year 1999-2000, it was rightly brought to tax in that year.
In our opinion, no substantial question of law arises in this regard.
The question whether an amount of Rs. 1,06,325 paid by the assessee to the previous employer for being allowed to join the new job, in the previous year relevant to the assessment year 1999-2000 is consequential inasmuch as this payment was made subsequent to 31-3-2000. There is no doubt, therefore, that the assessee would be entitled to the adjustment of this amount against the receipt of Rs. 15 lakhs in the previous year relevant to the assessment year 1999-2000.
Subject to above, there is no merit in this appeal. The appeal is accordingly disposed of.