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2015 (12) TMI 289 - AT - Income TaxDisallowance of assessee’s claim in respect of its liquidated damages - CIT(A) deleted the addition - Held that:- A coordinate bench in assessee’s appeal [2011 (2) TMI 1351 - ITAT AHMEDABAD] directed the Assessing Officer to allow the assessee’s claim on actual basis and that wherever the other party had claimed liquidated damages in current assessment year, it would be allowed. It was further of the view that the assessee has to submit individual account of its customers as per law. The assessee has succeeded in the previous round of proceedings. Thus, the Revenue’s argument on the issue of revised return according fails. A perusal of the case file reveals that the assessee filed all details of liquidated damages in question in the shape of individual ledger accounts from 01- 04-2002 to 31-03-2003. The same contain certification as per rules to have been filed in the course of assessment. The Assessing Officer still quoted lack of evidence and held that this claim was only in the nature of a provision. This voluminous evidence was nowhere even adverted to. The Revenue’s second argument quoting lack of evidence also stands rejected because of the sufficient supportive material regarding the impugned claim of liquidated damages. Revenue argument that these liquidated damages are only in the nature of a provision is unacceptable as we find that the CIT(A) on this issue has followed similar orders passed in earlier assessment year in assessee’s own case on the very issue. It has come on record that these claims have arisen from late delivery of goods beyond the specified period in the relevant previous year. The assessee passed these amounts in the books after ascertaining the claim in case of each customer. We find that the Assessing Officer himself in a consequential order dated 26-03-2003 for assessment year 1990-91 has followed a similar course of action. Various orders of the tribunal in assessee’s own case in assessment year 1984-85, 86-87, 89-90,90-91 have already decided the very issue in assessee’s favour. The Revenue fails to point out any distinction on facts. - Decided in favour of assessee.
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