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TMI Blog2012 (2) TMI 539X X X X Extracts X X X X X X X X Extracts X X X X ..... he A.O. on account of liquidated damages." 3. The brief facts as emerged from the corresponding assessment order passed u/s 143(3) dated 26.12.2007 are that the assessee company is in the business of manufacturing and trading of machinery parts. It was noted by the A.O. that the assessee has claimed an amount of Rs. 18,81,670/- as liquidated damages. The explanation of the assessee was that due to delayed delivery and late compliance of the order, certain parties imposed damages as penalty on the assessee. When the matter was carried before the 1st appellate authority, he has placed reliance on the order of the tribunal in the assessee's own case passed for the assessment year 1997-98 and few orders of Ld. CIT(A) for the assessment year 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore, dismissed. 7. Ground No.3 reads as under: "3. The Id. CIT(A) has erred in law and on facts in deleting the addition of Rs. 74,03,784/- made by the A.O. on account of unexplained investment in stock." 8. The A.O. has perused the statement of stock which was furnished to the bank by the assessee. He has noted that there was discrepancy in the stock disclosed as per the bank. A reconciliation was offered by the assessee as follows: "1. Stock as per statement given to the bank 51664008/- (-) less stock of old items and non moving items written off/scrapped 2840725/- (-) Less Excise duty include in closing stock of raw materials deducted as Per AS-2 1344328/- (-) Less dispatch made but not reflect in the bank stock statement 45 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It was also pleaded that normally the assessees declare I higher stock figure to the bank so that their cash credit limit would be more and normally bank I does not ask for audited figure of stock so there is bound to be difference between the audited ; figure and unaudited figure. The A.R. has cited various decisions and it has been pleaded that without any evidence that the claim of the appellant was not correct, no addition could have been made as unexplained investment. It is also a general fact that goods are dispatched in the last week of March including the last date of the financial year and the last dispatches have not been reflected in the bank statement. As I find the contention of the A.R. to be tenable and as there is no evid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he books of account on account of close of accounting period was genuine as also acceptable. We, therefore, find no fallacy in the relief granted by the Ld. CIT(A). The same is hereby confirmed and this ground of the revenue is dismissed. 11. Ground No.4 reads as under: 4. The Id. CIT(A) has erred in law and on facts in deleting the disallowance of Rs. 18,45,993/- made by the A.O. on account of expenditure incurred on foreign raining of the Director's daughter as employee of the assessee company." 12. It was noted by the A.O. that under the head "staff training", an amount of Rs. 18,45,993/- was claimed. The explanation of the assessee was that Ms. S S Modi had gone to U.K. for further training and education in Learner School of Economi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ming back from training and a bond was executed saying that if she was not going to join or if she left the company before six years, she had to reimburse back the expenses to the appellant company the whole expenditure incurred on her training along with interest. Considering the service agreement and the importance of training in H.R. for the growth of the company and the fact that she was already an employee of the appellant company prior to the training , I would hold that the expenditure is allowable as business expenditure . I further find that the cases cited by the A.O. are related to son of partner in two cases (1) CIT Vs. Hindustan Hosiery Industries -209 ITR 383 (Bom.) (2) M. Subramaniam Bros. Vs. CIT - 250 ITR 769 (Mad.) and in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arge and other responsibilities, if any, given to her by the company. 5. Ms. SM agrees that in due eventuality that she leaves the job during i.e. six years assured by her to the company, she will be liable to pay to the company in the proportion of the amounts spent and unfinished/ portion of the tenure with the company." 16. Apart from this service agreement, the Ld. A.R. has vehemently pleaded that Ms. S. S. Modi has already obtained a degree in Human Resources and Development from the University of New South Wales, Australia. Thereafter, she has obtained an appointment with the assessee company and at that time, when she was sent abroad for higher education, she was an employee of the assessee company. The Ld. A.R. has also informed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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