TMI Blog2016 (4) TMI 1096X X X X Extracts X X X X X X X X Extracts X X X X ..... inst the order of CIT(A), Vijayawada dated 21.3.2013 and it pertains to the assessment year 2009-10. 2. The brief facts of the case are that the assessee is a company in which the public are substantially interested, filed its return of income for the assessment year 2009-10 on 22.9.2009 declaring a total income of ₹ 92,74,12,634/-. The case was selected for scrutiny and accordingly, notices u/s 143(2) and 142(1) of the Income-Tax Act, 1961 (hereinafter called as the Act ) were issued. In response to notice, the authorized representative of the assessee appeared from time to time and furnished books of accounts and other information. During the course of assessment proceedings, the A.O. noticed that the assessee has claimed an amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee and also relied upon the ITAT, Hyderabad special bench decision in assessee s own case for the assessment year 1982-83 reported in 34 ITD 50, deleted the additions. Aggrieved by the CIT(A) order, the revenue is in appeal before us. 4. The Ld. D.R. submitted that the CIT (A) was erred in deleting the additions made by the A.O. towards liquidated damages, by relying upon the ITAT, special bench decision in assessee s own case for the assessment year 1982-83. The Ld. D.R. further submitted that though the ITAT, allowed the claim of liquidated damages in assessee s own case, the department has not accepted the order of ITAT and the same has been challenged before the Hon ble A.P. High Court and the case is pending for adjudicatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave also gone through the case laws relied upon by the parties. During the course of hearing, the A.R. of the assessee submitted that the issue involved in this appeal, is squarely covered by the decision of ITAT Hyderabad special bench in assessee s own case for the earlier assessment years. We have examined the case laws relied upon by the assessee in the light of the facts of the present case and find that the issue i.e. liquidated damages for breach of contract is held in favour of the assessee in assessee s own case in earlier assessment years. The relevant portion is reproduced hereunder: 7. The next issue in the appeal relating to the assessment year 2000-01 relates to the disallowance of liquidated damages. The assessee made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... date of completion of relevant contract. 7.2 As noticed by the Ld CIT(A), the issue regarding the point of accrual of liquidity damages has been settled by the decision of the Hyderabad Special Bench in the assessees own case referred supra, where in it was held that the claim for damages arose at the point of breach and at that point of time, the liability accrued and hence the provision for liquidated damages was to be allowed as deduction. Since the Ld CIT (A) has followed the decision of the special bench of the ITAT, we do not find any reason to interfere with his decision. 6. Considering the facts and circumstances of the case and also applying the ratios of the coordinate bench of this Tribunal, we are of the opinion tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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