9911796707
TMI Blog2011 (4) TMI 1512X X X X Extracts X X X X X X X X Extracts X X X X ..... re heard together and are being disposed off by this consolidated order for the sake of convenience. 2. First we take up assessee s appeal in ITA no.5293/Mum./2009. The sole ground raised by the assessee is, whether or not the learned CIT(A) was justified in confirming the disallowance of discount / rebate of ₹ 2,50,563, while computing the business income of the appellant. 3. Brief facts of the case are that, the assessee is a company and is engaged in the business of exporter in engineering goods. It filed return of income for assessment year 2002-03 on 5th September 2002, declaring total income of ₹ 40,06,630. The assessee claimed deduction under section 80HHC of the Income Tax Act, 1961 (for short the Act ), to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is stated above, we strongly contended i) Payment of US$ 5237 IN Commission of Electricity of General Company of Electrical Energy, Basrah was for getting business. It is normal business expenditure laid out or expended wholly and exclusively for the purpose of our business. ii) Said payment has ultimately culminated into business and profits on which income tax has been paid. iii) It is perfectly legal and valid payment made through proper banking channel. iv) This payment does not contravene any law or public policy of sovereign India. This is not an expenditure incurred by us for any purpose which is an offence or which is prohibited by any law of India. Hence question of applying explanation to section 37 for disallowing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olcker Committee s report, hence, the particulars of allegation about the appellant s name being mentioned in the Volcker Committee s report cannot stand. He also referred to certain other observations made by the Tribunal. He repeated the contentions made before the first appellate authority and prayed for relief. 6. Learned Departmental Representative, Mr. D. Songate, on the other hand, submitted that the Volcker Committee s report held that secretly kickbacks were made and this was opposed to Government policy. He pointed out that in the Volcker Committee s report, the finding was that what was actually paid was a bribe and not commission. He relied on Para-5 of Commissioner (Appeals) s order and submitted that no evidence was furnis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has to give a bank guarantee worth 10% of the contract amount. On completion of the contract and on receipt of payment, the assessee is required to pay 10% of the sale price to the buyer, to the Commission of Electricity, General Company of Electrical Energy Production, Basrah, Iraq. The assessee had furnished the bank guarantee and it was only thereafter that a letter of credit was sent to the assessee by the purchaser on 2nd June 2001. Thereafter, on receipt of money, the assessee had, through a nationalised bank, which is authorised dealer in foreign exchange paid 10% to the purchaser after obtaining approval of the Reserve Bank of India. The question is whether the payment made by the assessee can be regarded as an illicit pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, we set aside the order of the learned CIT(A) and allow the ground of appeal raised by the assessee. 9. Coming to the issue of re-opening, etc., the learned Counsel did not wish to press these grounds. Learned Departmental Representative did not object to the submissions so made by the learned Counsel. Consequently, these grounds are dismissed as not pressed . 10. In the result, assessee s appeal is partly allowed. 11. Now, we take up assessee s appeal in ITA no.1345/Mum./2009, and the sole ground raised is whether or not the learned CIT(A) was justified in confirming penalty of ₹ 89,450, imposed by the Assessing Officer consequent upon confirmation of disallowance in the quantum proceedings. Since the addition in quan ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
