TMI Blog2018 (10) TMI 613X X X X Extracts X X X X X X X X Extracts X X X X ..... hich is otherwise commercial expediency to terminate the dealership of DEL. The decision has been taken against the assessee purely on facts and we find that no Substantial Questions of Law arise for consideration in this Appeal. - Decided against the assessee. - Tax Case (Appeal) No.1081 of 2008 - - - Dated:- 26-9-2018 - Mr. T.S. Sivagnanam And Mrs. V. Bhavani Subbaroyan JJ. For the Appellant : Mr.A.S.Sriraman For the Respondent : Mr.Vijayakumar Punna for Mr.T.R.Senthil Kumar JUDGMENT T. S. SIVAGNANAM, J. This Tax Case Appal by the Assessee, filed under Section 260- A of the Income Tax Act, 1961 (the 'Act' for brevity), is directed against the order passed by the Income Tax Appellate Tribunal, Chenna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on record? 3.The assessee filed its return of income for the relevant assessment year, admitting a loss of ₹ 13,70,92,598/-. Revised return was filed on 04.10.1999 admitting a net loss of ₹ 15,11,30,633/-. Eventually the assessment was completed computing the net loss of ₹ 3,57,78,370/-, after making various disallowances, as per assessment. These additions have been challenged by filing appeal before the Commissioner of Income Tax (Appeals) ('CITA' for brevity). 4.The assessee contended that the disallowance of ₹ 6.3 crores being the amount of compensation for the termination of the wholesale dealership of M/s.Digivision Electronics Ltd., (DEL) is unsustainable and equally the disallowance of a clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e were other reasons also assigned by the CITA for confirming the order passed by the Assessing Officer. 6.The assessee carried the matter on appeal to the Tribunal and the Tribunal, after taking note of the factual position, concurred with the findings recorded by the Assessing Officer, as confirmed by the CITA. The Tribunal pointed out that there is no doubt the assessee as well as DEL were closely associated and there is nexus between the two and that the assessee was about to approach the BIFR for revival in the year 1997 and there was no eminent cause or reason for the assessee to terminate the dealership of DEL and when there was no return agreement between the assessee and DEL, it cannot be said that the assessee has taken up a pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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