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2015 (7) TMI 728 - AT - Income TaxAddition of expenses as penal in nature - forfeiture of the Bank Guarantee - CIT(A) deleted the addition - Held that:- In the present case, it appears that the AO himself in his remand report accepted on the basis of evidence furnished by the assessee that the forfeiture of the Bank Guarantee was a sort of compensation for nonfulfillment/ shortfall of certain conditions in export obligations. Therefore, it was related to the business activities of the assessee and was revenue in nature. In that view of the matter, we do not see any infirmity in the order of the ld. CIT(A) on this issue. - Decided in favour of assessee. Addition for provision for House tax, an unascertained liability - CIT(A) deleted the addition - Held that:- Issue is covered in favour of the assessee vide orders for the assessment years 2008-09, 2007-08 & 2006-07 [2012 (4) TMI 570 - ITAT DELHI] and [2010 (5) TMI 794 - ITAT DELHI] wherein held The dispute on property tax is between NDMC and STC. There is no dispute between the NDMC and the assessee. Thus, the liability of the assessee is towards STC and not to NDMC. As raising of demand, by STC and acceptance of liability amounting to ₹ 11,40,958/- by the assessee has not been disputed by the revenue. We are of the considered opinion that the impugned amount has accrued during the year under consideration and such amount was allowable as a deduction in the year under consideration. In this view of the matter, we do not find any infirmity in the order of Ld. CIT(A) on this issue and confirm the same. - Decided against revenue. Addition being amount deducted by the assessee from the sales account of Jaipur Branch - CIT(A) deleted the addition - Held that:- In the present case, the claim of the assessee is that the adjustment had been made on account of fluctuation in foreign exchange which was related to the export sales. However, neither the AO nor the ld. CIT(A) had mentioned in their respective order that the impugned amount relates to the foreign exchange fluctuation. In our opinion this issue requires a fresh examination at the level of the AO. We, therefore, set aside the impugned order and remand this limited issue to the file of the AO for fresh adjudication in accordance with law after providing due and reasonable opportunity of being heard to the assessee. - Decided in favour of revenue for statistical purposes.
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