1 itxas821-10 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.821 OF 2010 The Commissioner of Income Tax-II ..Appellant. V/s. Menon Pistons Ltd. ..Respondent. Mr. Vimal Gupta for appellant. Mr. S.N. Inamdar, senior Advocate for respondent. CORAM : J.P. DEVADHAR AND MRS. R.P.SONDURBALDOTA JJ. DATED : 6TH JUNE, 2011 P.C. :- 1. The respondent-assessee, manufacturing Aluminium Pistons, etc. had issued discount coupons to its customers in the assessment year 2002-03 amounting to Rs.2.48 crores. The coupons were encashed by the customers to the extent of Rs.2,10,78,000/-. There were only two ways in which the expenses on encashment for coupons could be allowed in the computation of the assessee's business income, namely, (a) either by treating the accrual of liability at the point of time when coupons were issued or (b) by treating the accrual of 2 itxas821-10 liability at the point of time when coupons are encashed. The Tribunal has recorded a finding of fact that the method of accounting will anyway be mercantile method of accounting but the second method is more realistic, in as much as it is not always necessary that all the coupons issued by the assessee are actually encashed by the customers. The Tribunal has recorded a finding of fact that such method of accounting has been consistently followed by the assessee all along in the earlier years and the expenses on coupon have been booked only when the coupons are presented for encashment. In our opinion, the decision of the Tribunal is based on finding of fact and no substantial question of law arises from the order of the Tribunal. In the result, the appeal is dismissed with no order as to costs. (MRS. R.P.SONDURBALDOTA, J.) (J.P. DEVADHAR, J.)