2012 (1) TMI 101

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..... against the order of the Commissioner of Income-tax (Appeals)-VI at Chennai, dated November 14, 2011 and arises out of the assessment completed under section 143(3) read with section 147 of the Income-tax Act, 1961. The assessee-company is engaged in the business of importing petroleum products, mainly superior kerosene oil. The assessee-company, after importing superior kerosene oil, supplies t .....

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..... /s. Konkan Storage Systems P. Ltd. towards rent. But, immediately after the arrangement made by the assessee-company, the Government prohibited the import of kerosene oil and the assessee could not import kerosene oil thereafter, particularly through Cochin Sea Port. As the import of the kerosene oil was frustrated, the assessee had no occasion to store any imported kerosene oil in the storage ta .....

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..... l was raised by M/s. Konkan Storage Systems P. Ltd. against the assessee and no services were rendered by that company and, therefore, there was no question of incurring any such expenditure by way of storage charges. The Commissioner of Income-tax (Appeals) also agreed with the view of the assessing authority and held that the claim was not allowable especially when the assessee had shown it as r .....

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..... n that the import of kerosene oil was prohibited by the Government at that point of time. That the prohibition made by the Government and the consequential inability of the assessee-company to import kerosene oil and non-utilisation or insufficient utilisation of the facility offered by M/s. Konkan Storage Systems P. Ltd., altogether, had not changed the character of the expenditure incurred by th .....

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..... while computing the taxable income of the assessee-company. The contention of the assessee is accepted and the assessing authority is directed to revise the computation of taxable income after deducting the sum of Rs. 20,36,160. In the result, this appeal filed by the assessee is allowed. The order pronounced in the open court at the time of hearing on Thursday, the 12th January, 2012 at Chennai. .....

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