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2020 (1) TMI 1069 - HC - Income TaxAddition of demurrages for delay in execution of the project - appellant maintaining books of account under merchantile system of accounting - CIT-A allowed the claim of the appellant in respect of demurrages for delay in execution of the project - Tribunal reversed the order of CIT (Appeals) and restored the order passed by the Assessing Officer - HELD THAT:- From perusal of the order passed by the Tribunal, it is evident that the order passed by the Tribunal is based on opinion given by Mr. S. Janardhan, advocate as well as the fact that the appellant has not been able to produce the original deed of arbitration. The Tribunal therefore, has doubted the genuineness of the entry made in the books of accounts by the appellant to the tune of ₹ 54,00,000/-. Ordinarily, we would have dealt with the issue in this appeal itself. Since the revenue has disputed the genuineness of the entry made in the books of accounts, therefore, we are not inclined to decide the issue whether the Tribunal was justified in confirming the addition of ₹ 54,00,000/- in respect of demurrages for delay in execution of the project. The Tribunal has failed to take into account the remand report of the Additional Commissioner of Income Tax and joint venture agreement dated 19.09.1992. We deem it appropriate to set aside the order passed by the Income Tax Appellate Tribunal. Needless to state that it would be open to the Tribunal to pass such order as it may deem fit in accordance with law. The Tribunal, after affording an opportunity of hearing to the parties, shall decide the appeal preferably within a period of three months from the date of receipt of the certified copy of the order passed today. It is also clarified that this Court has not expressed any opinion on the merits of the case and all the contentions which are available to the parties in law are kept open. Accordingly, the substantial questions of law are answered.
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