2013 (9) TMI 970

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..... 10.1999 - Turnover of the assessee was substantial, nearly Rs.68 Crores. Rs.34.9 lacs was a trivial amount, only 0.5% of the total turnover – Assessee-respondent suffered substantially high losses of Rs.372 Crores in last ten years and therefore addition of Rs.34.9 lacs was not material as the respondent assessee was not to pay any tax - Accepted the explanation given by the respondent-assessee an .....

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..... e assessing officer under Section 271(1)(c) of the Income Tax Act, 1961 (for short, ?the Act?). The assessee had made payment of non-compete fee amounting to Rs.36,66,663/- and claimed it as a revenue expense. Payment was monthly. The assessing officer observed and held that it was a capital expense. The issue was clearly debatable and not free from doubt. It is not the case of the revenue that th .....

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..... respondent assessee agreed to the said addition on the ground that it was difficult to collect details from their offices all over India for all expenses over Rs.5000/-. However, some details were furnished vide letter dated 29.10.1999. In the penalty proceedings, the respondent-assessee reiterated and submitted their explanation, and had stated that their explanation was bonafide. It was highligh .....

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