2012 (9) TMI 591

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..... . The amount may be taxed in the hands of the assessee in the financial year in which it is received by the assessee, if he succeeds in the arbitration - For the present, the amount stands deducted and thus the matter does not call for any interference by the High Court. - INCOME TAX APPEAL No. - 209 of 2009 - - - Dated:- 13-9-2012 - Sunil Ambwani, Aditya Nath Mittal, JJ. Petitioner Couns .....

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..... and no award had been delivered. (2) Whether on the facts and circumstances of the case the Hon'ble ITAT had erred in law to delete the addition of Rs. 2, 14, 748/- ignoring the fact that the parties to whom payments were made had running account with the asessee and for this reason the payments were hit by the provisions of Section 40A (3)? The respondent-assessee did not receive the payment .....

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..... hat the present case is on the similar lines. The deductions were made by the Delhi Vidyut Board as the transformers given to the assessee for repairs were delivered late. Such deduction could be treated as penalty and had to be treated as damages/compensation to DVD, and thus the CIT (A) rightly deleted the additions. The Tribunal further observed that the demand of payment of Rs. 44, 51, 796/- w .....

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