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2014 (6) TMI 971 - AT - Income TaxDisallowance of demurrage charges and penalty charges - non allowable expenses - CIT(A) deleted disallowance - Held that:- When the amounts are paid on contractual obligation the same have to be allowed as business expenditure. The amount paid for non delivery of goods in time is allowable as deduction even though such amount is designated as ‘penalty’ in the supply contract, time being the essence of the contract. In view of the above discussions and precedent we do not find any infirmity in the order of the ld. CIT(A) and accordingly we uphold the same. - Decided in favour of assessee Disallowance made towards excess depreciation claimed by the assessee company in respect of Tippers & Dumpers - Held that:- This issue has been decided by the appellate authorities in assessee’s own case in the earlier years in favour of the assessee wherein , came to the conclusion that in view of Circular No.652 dated 14th June, 1993 of C.B.D.T., the assessee was entitled to the benefit because of the fact that the assessee was using the vehicles in both the capacities, that is to say, business for transportation of goods on hire as well as transportation of goods. It was also pointed out that in the past for the assessment years 2005-2006 and 2004-2005, the learned C.I.T.(A) held that the assessee had the business of transportation of goods on hire as well as transporting other goods and, as such, was entitled to higher rate of depreciation as per the said Circular No.652. It appears that the Revenue did not challenge those decisions.- Decided in favour of assessee
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