9911796707
TMI Blog1988 (1) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... 40 on account of accrued liability of sales-tax on skimmed milk powder. 2. On the facts and in the circumstances of the case the CIT(A) has erred in directing that a sum of Rs. 6,27,500 being the receipt of the legal cost recovered from National Bank of Pakistan should be excluded from the total income of the assessee. 3. On the facts and in the circumstances of the case the CIT(A) has erred in deleting the disallowance of Rs. 1216 which was received by the Executive Director by way of reimbursement of Medical expenses. 4. On the facts and in the circumstances of the case, the CIT(A) has erred in directing that the weighted deduction under s. 35B should be allowed in respect of all the expenses incurred by the company inIndia. 5. On the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court on 1st May, 1978, i.e., during the relevant previous year and is a revenue expenditure as it was incurred with a view to avoid possible forfeiture by Govt. of Pakistan of valuable assets of the appellant and not for bringing into existence a new asset or improving on existing asset. He has failed to appreciate that the appellant was still continuing the business and the expenditure was incurred with the sole aim of converting its valuable assets into a realisable sum of money with a view to avoiding a total loss of said assets due to hostile actions of the Govt. of Pakistan. 3. For that the learned CIT(A) has erred in refusing to give directions to the ITO to modify the computation of the quantum of deduction admissible to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITA No. 3018/Del/1982 involving asst. yr. 1978-79 by a common order dt.30th April, 1987while Tribunal Delhi Bench 'B' disposed of, again by a common order ITA No. 5718/Del/84 (by the assessee), CO No. 108/Del/85 (by the Revenue) and ITA No. 2614/Del/85 (by the assessee) vide orders of14th Jan., 1986. 6. The learned authorised representative of the parties categorical in their assertion when these appeals were heard that assessee's grounds of appeals taken before us as grounds 1,3,4, & 5 and Revenue's grounds 1 to 5 are covered by the above-mentioned orders since the issue remains the same and so remain the stand of the parties, the facts of the cases and the reasoning of the learned lower authorities. 7. We have perused for ourselves, afr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and stands dismissed. 13. As regards assessee's appeal since ground No. 3 is not pressed, it stands rejected. In fact, this ground is covered against the assessee by the orders of the Tribunal made for the asst. yrs. 1978-79 and 1980-81 and pointed reference is made to paras 11 to 14 of the respective orders. This also stands covered by the decision of the Hon'ble Supreme Court in Lohia Machines Ltd. & Anr. vs.Unionof India & Ors. (1985) 44 CTR (SC) 328 : (1985) 152 ITR 308 (SC). The ground becomes infructuous and it is held to be so. 14. As regards the assessee's ground No. 1, it is again covered against the assessee by order of the Tribunal made for the asst. yr. 1978-79 and pointed reference is made to paras 5 and 6 of the said order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id expenditure, no asset or advantage of enduring nature has come into existence. The ITO held the expenditure as in the nature of capital expenditure. The learned CIT(A) upheld the disallowance with the reasoning that expenditure was entirely in connection with the sale of a capital asset in the year 1962 and the liability was not connected with the business carried on by the assessee but was connected and incurred in connection with the sale of a capital asset and accordingly, would fall within the provisions of s. 48 of the Act i.e., relating to the provisions dealing with the computation of capital gain. The learned CIT(A) also held that the assessee has failed to show as to how it could be said that the commission was paid to protect t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o of this decision, instead of helping the assessee helps the Revenue. 20. The next reliance of the assessee is of the ratio of the decision of the Hon'ble Allahabad High Court in the case of APS Cold Storage and Ice Factory vs. CIT (1979) 119 ITR 709 (All). Their lordships therein held that it is settled law that till such time that an arbitrator's award is not made a rule of the Court, and a decree obtained on its basis, it cannot be enforced against the party against whom it has been made and remains at best a contingent liability. Their Lordships as such laid down the ratio about the allowability of a liability even in a case where 'mercantile' system of accounting is followed. Their Lordships, in fact, held that a liability for which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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