TMI Blog2017 (9) TMI 251X X X X Extracts X X X X X X X X Extracts X X X X ..... discussion in the Tribunal's order is that even if what is alleged by the Assessing Officer and relying upon the report is taken as true and correct, still, the participation of the assessee was not established and proved. The assessee was not found to have made any kickbacks or payment of that nature which reached the Iraq Government and through the channels indicated in the Volcker Committee Report. There was no material of this nature in possession of the Assessing Officer against the assessee. It is in these circumstances that the Tribunal concluded, and essentially in the peculiar facts of the case of the assessee, that the assessee has not incurred any expenditure for any purpose which is an offence or which is prohibited by law. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... administration and management of Oil for Food programme in Iraq. The information was received by the Investigation wing in writing and which according to the Revenue named the Assessee. The report pointed towards the payment made to the then Iraqi Regime/Iraq Government and which is termed as illicit oil charges. Though, the payments are made under a humanitarian contract but the device and means employed would indicate that this was complete abuse of the Oil for Food programme and came within the prohibitions and sanctions imposed by the United Nations. 5 The Tribunal proceeds on the footing that the payments are not admissible for deduction at all by virtue of explanation 1 to Section 37 of the Income Tax Act, 1961. 6 Before us, Mr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yment of inland transport expenses as explained by the Assessee is towards the transportation of the export goods from the port to the destination. The Tribunal perused the terms of the contract, the obligation of the transportation of the goods from port to the destination and that is sqarely of the Assessee. The Assessee had to arrange the transportation of the goods from the port to the destination. It is pertinent to note that when the payment of transportation is as per the terms of the agreement, then, it cannot be termed as bogus or illegal. The Assessee had placed on record the relevant materials, details and evidence to show that these payments were made to identified parties through Banking Channels and after approval of the Reser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of inland transportation charges and commission expenses by holding it to be not covered under Explanation to section 37(1) of the Income Tax Act which is contrary to findings of the Assessing Officer CIT (A) that the assessee failed to prove in evidence that these expenditure were for its business expediency and hence not allowable u/s. 37(1) of the Income Tax Act? C) Whether on the facts and circumstances of the case and in law, the Hon'ble Income Tax Appellate Tribunal was justified in deleting the disallowance of inland transportation charges and commission expenses on the basis of submission made by the assessee before Income Tax Appellate Tribunal without according due opportunity to the revenue? D) Whether on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder of the Tribunal allowed the Assessee's Appeal before it by placing reliance upon its own decision of a Coordinate Bench dated 26.07.2013 in the case of Ajanta Pharma Ltd. It is also an agreed position that Appeals were filed by the Revenue in this Court in the case of Ajanta Pharma Ltd. 16 Therefore, Mr. Hadade is right in urging that the fate of the present appeals would have to abide by order passed in 09.08.2017 (M/s. Ajanta Pharma's Case) 17 In the light of the above agreement and specifically recorded by this Court in the order passed by 20.03.2017, all the more, we are disinclined to accept the arguments of Mr. Malhotra. Our order of 09.08.2017 fully covers the issue. Even the additional question proposed has been a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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