9911796707
TMI Blog2012 (9) TMI 433X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment u/s 143(3) was completed on 1.3.2001 at total income of Rs. 2,38,97,414/-. In this assessment, an addition of Rs. 39,72,000/- was made, which was deleted by the Ld. CIT(A). The matter was agitated before the Tribunal and the appellate order was passed on 9.6.2006. In this order, the matter regarding addition of Rs. 39,72,000/- was restored to the file of the AO for examining as to whether this liability of earlier years has crystallized in this year or not. The relevant finding of the Tribunal is reproduced below for ready reference :- "We have examined the rival submissions. We are following the order of the ITAT, Delhi Bench 'B', New Delhi in ITA No. 1564/Del/2001 for assessment year 1996-97 dated 30.11.2005. The relevant part of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et Secretariat dated 24/12/1999, which does not pertain to AY 1998-99 but it pertains to later year. Hence, the assessee cannot be allowed the amount of Rs. 28.48 lakhs in AY 1998-99. It is further to be mentioned that the assessee has filed one letter from UCO bank regarding nil margin standing on behalf of the assessee. Again this letter dated 16/02/2000. Hence, on the basis of these letters from bank and cabinet Secretariat, which do not pertain to AY 1998-99 the assessee cannot be allowed the expenses worth Rs. 28.48 lakhs. It is further to be mentioned that even the letter of the bank is not very clear regarding the fact whether the assessee has paid Rs. 28.48 lakhs to the bank. Hence, the same is disallowed and added back in the inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... circumstances, the addition of Rs. 28.48 lacs is upheld." 2.3 Aggrieved by this order, the assessee has filed appeal before us. 3. Ld. Counsel for the assessee furnished a brief history that the case has now come up before the Tribunal for the second time. Our attention has been drawn towards the finding of the ITAT which has been reproduced earlier by us. It is submitted that the liability arose on account of difference in the interest charged by the bank and provided by the assessee in the books of earlier years. The assessee had been under the impression that it is liable to pay simple interest while the bank charged the compound interest. The assessee requested the bank to waive the differential amount. It was not done so. This amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce to meet the direction of the Tribunal furnished earlier. Accordingly, it is argued that the assessee is not entitled to deduct this amount in computing the income. 3.2 In the rejoinder reply, Ld. Counsel asserted that the liability has crystallized in this year for the simple reason that bank has debited this amount in the account of the assessee. 4. We have considered the facts of the case and submissions made before us. The facts are that the debit in the bank account of the assessee was made at Rs. 2,48,60,371/- on 31.3.98. The amount is interalia stated to include the liability on account of charging compound interest in respect of borrowings made in earlier years. However, there is no break up of the amount to reconcile the afores ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e prior to that. In other words looking to the agreement between the assessee and the dealers, it was held that the liability accrued on 30.6.1991. 4.2 In the case of CIT vs. Vishnu Industrial Gases Pvt. Ltd., decided by Hon'ble Delhi High Court on 6.5.2008 in ITR 229/1988, again a reference has been made to the observations of Bombay High Court in the case of CIT VS. Nagri Mills Co. Ltd. In concluding paragraph it has been mentioned that the situation does not seem to have changed for the last 50 years and the revenue continues to raise the question whether the tax is leviable in a particular year or in some other year. On this basis itself, the appeal of the revenue was returned as unanswered. 4.3 The question in the case of CIT vs. Din ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
