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2011 (8) TMI 509 - HC - Income TaxAddition - bogus claim of various expenses - genuineness of transaction - the entire issue is based on the evidence on record - The Tribunal having appreciated the evidence and given its findings on such evidence, hence no question of law arises - The Tribunal being the final fact finding authority, its conclusion on facts would not be open to question before us unless of course such conclusions suffer from perversity - Thus, the Tribunal has given its findings on the basis of the evidence on record - No perversity is pointed out - Decided in favour of assessee. Inflated/bogus expenses - Assessee has provided all the relevant details to prove the genuineness of expenses and therefore merely because some of the details could not be furnished or the accounts were not reconciled because of mistake of other party, the addition could not be warranted. It is also observed that the clearing and forwarding expenses are quite fair and reasonable as compared to previous year. The profit margin is also fair as compared to previous year as well as in comparable cases - Therefore, looking to the totality of facts the addition is deleted. Disallowance of ₹ 17,45,865/- Provision for expenses - expenses are provided on the last date as the debit notes were issued only in the month of April 2004. Therefore, merely the debit notes issued in subsequent year, the expenses cannot be disallowed -The liability is in praesenti though it will be discharged at a future date - It does not make any difference if the future date on which the liability shall have to be discharged in not certain" - Therefore, respectfully following the decision of the Hon'ble Supreme Court in the case of Bharat Earth Movers 2000 (8) TMI 4 - SUPREME Court, the addition made by AO is deleted. Exemption u/s 10A - Evidence clearly proves that the goods were produced at special economic zone and the same were also exported outside India and the assessee had earned the receipts in foreign currency - Decided in favour of assessee.
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