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TMI Blog2015 (7) TMI 728X X X X Extracts X X X X X X X X Extracts X X X X ..... mstances of the case and in law the learned CIT(A) has erred in deleting the addition of Rs. 3,79,958/- made by the AO being amount penal in nature. 2. On the facts and in the circumstances of the case and in law the learned CIT(A) has erred in deleting the addition of Rs. 28,87,000/- made by the AO being provision for House tax, an unascertained liability. 3. On the facts and in the circumstances of the case and in law the learned CIT(A) has erred in deleting the addition of Rs. 1,75,95,258/- made by the AO being amount deducted by the assessee from the sales account of Jaipur Branch. 4. The Appellant craves reserving the right to amend, modify, alter, add or forego any grounds of appeal at any time before or during the hearing of ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... feiture of Rs. 3.80 lacs which was a sort of compensation for non-fulfillment/shortfall of certain conditions in export obligations. In view of the above submissions, the ld. CIT(A) held that forfeiture of the Bank Guarantee of Rs. 3,79,958/- was revenue in nature hence it was allowable. 7. Now the department is in appeal. The ld. DR supported the order of the AO and further submitted that the forfeiture of Bank Guarantee was penal in nature. Therefore, the AO rightly made the addition and the ld. CIT(A) was not justified in deleting the same. 8. In his rival submissions the ld. Counsel for the assessee reiterated the submissions made before the authorities below and strongly supported the impugned order passed by the ld. CIT(A). 9. We h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . We deem it appropriate to reproduce the relevant findings given in para 7 of the order dated 09.09.2011 in ITA No. 2987/Del/2011 for the assessment year 2007-08 which read as under: "7. We have heard the parties and perused the record. It is not a case where the NDMC has raised demand on the assessee on account of house/property tax. The assessee is a licencee of the premises and the demand has been raised by the STC. The above facts has not been disputed by the revenue. The dispute on property tax is between NDMC and STC. There is no dispute between the NDMC and the assessee. Thus, the liability of the assessee is towards STC and not to NDMC. As raising of demand, by STC and acceptance of liability amounting to Rs. 11,40,958/- by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... too without any corresponding credits in the relevant account was not acceptable. Accordingly, the impugned addition was made. 16. Being aggrieved the assessee carried the matter to the ld. CIT(A) and submitted as under: "The bullion prices keep fluctuating day in and day out. The price which is prevailing at the time of booking of an order for delivery in a proforma invoice is never the same at the time of actual delivery of goods i.e. passing of title, the very basis of the contract of sale in letter and spirits of recognition of revenue based on prevailing accounting standards. The assessee corporation facilities import of bullion on service charge basis and such service charges are routed through sales and purchases and which as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sp; Less: Sales Reversed (and not 1,75,95,258 as alleged &nbs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uncalled for and unsupportive. Keeping in view of the above stated facts, the disallowance made by the Assessing Officer of Rs. 1,75,95,258/- on account of deduction is hereby deleted. Hence the appeal is allowed on this ground." 18. Now the department is in appeal. The Ld. DR referred to the page no. 13 of the assessee's paper book and submitted that the assessee has debited the impugned amount on 31.03.2005 but nowhere it is mentioned that it was on account of fluctuation in the foreign exchange and even the ld. CIT(A) had not gone through the said ledger account while allowing the relief to the assessee. 19. In his rival submissions the ld. Counsel for the assessee reiterated the submission made before the authorities below and fur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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