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2013 (9) TMI 557 - ITAT JAIPURAdjustment of accrued demurrage charges - assessee contended that since the amount is not credited to profit and loss account, it is not taxable - Held that:- If a receipt has accrued but not shown in the books then it does not mean that such accrual of money is not to be considered for income. When a person gets a right to claim debt from others then such debt stand accrued - Decided against the assessee. The auditor has pointed out that due to not making such entry of demurrage charges in profit and loss account, then loans and advances are understated by Rs.5,00,080/- and liability overstated by Rs.2,70,726/-. It means that assessee has to pay Rs.2,70,726/- to those parties from whom demurrage was to charged. Hence to this extent, the assessee can recover through journel entry without writing off debt unless demurrage is waived by Board of Directors and allowed by revenue u/s 37 of the I.T. Act. CIT (A) was justified in confirming the addition of Rs.7,70,606/- - Decided against the assessee. Payment of Privilege fees - Nature of expenditure - exclusive privilege for wholesale trade of Indian made Foreign Liquor & Beer - Held that:- The issue is whether the fee paid is for the purpose of business or not. If it is in conteravention of provisions of Excise Act, the Excise Authority will take appropriate action, but if the same is paid for business purpose, then the payment cannot be held as in genuine or held as not allowable in view of provisions of section 37 (1) of the Act. It is further seen that even there is no contravention in paying the privilege fee as the fee is paid under section 24 of the Excise and the provisions of section 28, 29 are not applicable as they are on separate aspect - held as business expenditure - Decided in favour of assessee.
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