2013 (7) TMI 114

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..... port entitlement in view of loss being suffered by it. The Assessing Officer does not dispute this fact nor does he doubt the genuineness of the claim of the expenditure being for business purpose. In these facts the Tribunal held that respondent assessee has not contravened any provisions of law and thus the forfeiture of the bank guarantee was compensatory in nature under section 37(1) of the Ac .....

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..... e Apparel Export Promotion Council (APEC) granted to the respondent-assessee entitlements for export of garments and knit wares. In consideration for export entitlements the respondent-assessee furnished a bank guarantee in support of its commitment that it shall abide by the terms and conditions in respect of the export entitlements and produce proof of shipment. It was also provided that failure .....

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..... on 37(1) of the Act in view of the Explanation thereto. On appeal, the Commissioner of Income-tax (Appeals) deleted the disallowance and allowed the appeal. On further appeal by the Revenue, the Tribunal confirmed the order of the Commissioner of Income-tax (Appeals) and in particular, his findings of facts. 3) The contention of the Revenue is that the forfeiture/encashment of the bank guaran .....

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