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TMI Blog2014 (7) TMI 350X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner who had occasion to go into the aspect, found it to be untrue – there was no infirmity with the conclusion of the AO and subsequently the Commissioner that the claim for liquidated damages on the basis that 3 lakhs MT were to be supplied, amounted to furnishing inaccurate particulars - The explanation given by the respondent assessee cannot by any stretch of imagination be termed as bona fide so as to escape the mischief of Section 271 (1) (c) of the Act - the order is set aside – Decided in favour of Revenue. - ITA 83/2014 - - - Dated:- 2-7-2014 - S. Ravindra Bhat And Vibhu Bakhru,JJ. For the Appellant : Mr. Sanjeev Sabharwal, Sr. Standing Counsel with Mr. Ruchir Bhatia, Jr. Standing Counsel. For the Respondent : None ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relevant previous year it had incurred expenses on liquidated damages which had to be charged in profit and loss account and in this regard contended as follows: - The assessee entered into a contract with Golden World Enterprise Limited, Hong Kong ( Buyer ), to supply a total quantity of 2,85,000 WMT 10%, during the year 2007-08. It was agreed that individual contracts will be made for each shipment to ensure the supply is made on mutually agreed rates for each shipment. It was also provided in the agreement that should the assessee fail to comply with the terms of this clause (supply of the agreed quantity), the buyer, without prejudice to other remedies available to the buyer shall be entitled to recover, Liquidated Damages for bre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... istake, is unsustainable. There was no material on the record to support the assessee s return which claimed an allowance on the basis that the total quantity to be supplied was 3 lakh MT. The first explanation, i.e. that the said figure included the moisture content, is not borne out from the record; it also does not appear to be a part of any condition agreed to between the parties. The Commissioner who had occasion to go into this aspect, found it to be untrue. On the basis of these facts, we find no infirmity with the conclusion of the AO and subsequently the Commissioner that the claim for liquidated damages on the basis that 3 lakhs MT were to be supplied, amounted to furnishing inaccurate particulars. The explanation given by the res ..... X X X X Extracts X X X X X X X X Extracts X X X X
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