2017 (11) TMI 1638 - HC - Income Tax

Provision for liquidated damages and warranty - permissibility of the claim which appears to have been added back under Section 41 - Tribunal which directed a remit to the CIT(A) on the question of provisions - Held that - the Court is of the opinion that the impugned order of the ITAT requires to be modified; instead of the remand to the CIT(A), the Court hereby directs the ITAT to decide the issue with respect to provision for liquidated damages and warrants claimed by the assessee as expenses, in this appeal along with the appeals for AY 2005-06, said to be pending before it. The parties shall be present before the ITAT on 28.11.2017 when the other appeals are listed.

Summary

The Delhi High Court directed the Income Tax Appellate Tribunal to decide on the provision for liquidated damages and warranty claimed by the assessee as expenses, instead of remanding it to the CIT(A). The appeal was partly allowed.