Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (10) TMI 392 - AT - Income TaxAllowable revenue expenditure - customs duty paid towards Countervailing Duty (CVD) subsequently claimed by the assessee refund from the Customs Department but the said claim was declined even upto the stage of first appellate authority - HELD THAT:- At the time of passing the assessment order dated 27.12.2008 it was rather certain that the claim of refund made by the assessee was denied by the Customs Authorities including the first appellate authority and consequently it cannot be said that income has accrued or arise to the assessee during the year under consideration or till the assessment order was passed. The entries and treatment in the books of account is not a conclusive basis for holding the income arises and liable to tax. AO is under duty and obligation to assess the actual and correct income as per provisions of the Act while acting as a quasi judicial authority and not to take advantage of any mistake or the entries made in the books of account. CIT (A) has confirmed the addition by citing the provisions of section 41(1) which in our view not applicable in this case as discussed in earlier part of this order. Accordingly, we hold that the addition made by the AO on account of claim of refund of Countervailing Duty without appreciating the fact that the said claim was already rejected and the chances of refund are very bleak is not justified, therefore, the addition made by the AO and confirmed by the ld. CIT (A) is deleted. - Decided in favour of assessee.
|