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2016 (5) TMI 1354 - AT - Income TaxConsidering the demurrage & wharfage expenses as penalty - Held that:- This Tribunal in assessee’s own case for Assessment Year 2009-10 as relied upon the decision of Mahlaxmi Sugar Mills Co. Ltd. Vs CIT (1984 (5) TMI 6 - DELHI High Court ) held that the payment in question is not the penalty or fine for violation of any statute. It is compensatory in nature. - Decided against revenue Notional interest on the advance as income in the hands of the assessee - Held that:- As the assessee has not yet been able to recover even the principal amount advanced to M/s. Karsan and it is not possible to consider the notional interest on the advance as income in the hands of the assessee, which is not received yet. Accordingly, we dismiss these grounds of revenue’s appeal. Addition in respect of the provisions made for post retirement medical benefits as per AS-15 - Held that:- Coordinate Bench of this Tribunal has decided the issue in favour of the assessee and against the Department in assessee’s own case for Assessment Year 2009-10 held that Hon’ble Supreme Court in the case of Bharat Earth Movers vs. CIT (2000 (8) TMI 4 - SUPREME Court) has held that liability being a determined one, though to be discharged in future, did not make it a contingent liability and it is an allowable liability. - Decided against revenue Disallowance on account of valuation of slow moving, non moving and obsolete stores - Held that:- On perusal of relevant facts and circumstances we are of the view that the change effected by the assessee was aimed at obtaining correct business profits as per the recommendations of evaluation report submitted by the CAG and Engineer/Valuer respectively. It is nobody’s case that the assessee has not accumulated such stocks in the past. Undoubtedly, such stock went on losing its value for the purpose of assessee’s business, thereby deteriorating assessee’s profits year in and year out. It was in such a scenario that a decision was taken to investigate the entire matter by appointing a committee of experts on whose recommendations, based on proper study of market condition, the assessee company reduced the value of stocks and this value has been carried forward to the next year and assessed as such. Respectfully following the same, we are of the considered opinion that assessee’s claim requires to be accepted.- Decided against revenue
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