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2013 (11) TMI 1274 - AT - Income TaxDisallowance of claim - Held that:- The assessee had rightly claimed the expenditure - The facts have not been disputed that the assessee company made above payment during the year under consideration for the purchase of additional equipment from L&T as per drawings approved by BSP - The TPI contract with Bhilai Steel Plant was on turnkey basis and the L&T supplied equipments in accordance with drawings approved by BSP, the disputed amount was debited to the P&L account in the accounting year 2001-02 and there was actual supply of equipment - the finding of the Assessing Officer is not sustainable - the liability was actually crystallized during the year. Furnishing of Satisfactory Evidences - Held that:- The Commissioner of Income Tax(A) rightly held that the claim of the assessee was to be allowed during the year under consideration - The revenue has not disputed the point that the assessee made a payment as damages PU Decks as per contractual terms when supply was made - This fact also has not been disputed by the revenue that at the trial run it was found that the supplied PU Decks were defective and the BSP directed the TPI to re-supply the PU Decks or to suffer a recovery and due to rise in the price of PU Decks, the TPI chose to pay the damages and the recovery was made according to contractual terms during the year under consideration - While the same amount of recovery has been taken into account by the assessee during the financial year 2001-02. The financial year ended on 31.3.2002 and the assessee company has made all payments after end of financial year - the recovery of cost of MST Compound by BSP, the payment for erection of building Structures and Technological Structures to M/s HSCL and payment to M/s Andrew Yule & Co. Ltd. against Final Painting was actually settled and made after the end of financial year.
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