TMI Blog2015 (1) TMI 1433X X X X Extracts X X X X X X X X Extracts X X X X ..... directed the assessee to adjust the necessary expenses required for the marketing, promotional and liasioning work including commission on behalf of M/s. Rudgormach against the outstanding lying with the account. This clearly shows that there is no cessation of liability. In the present case, the amount has any way not been written off. It remains as a liability in the books of the assessee. In these circumstances, we are of the view that the finding of the ld. CIT(Appeals) is on right footing and does not call for any interference. - Decided against revenue - I.T.A. No. 609/Kol./ 2012 Assessment year : 2007-2008 - - - Dated:- 30-1-2015 - Shri N.K. Saini (Accountant Member), and Shri George Mathan (Judicial Member) Shr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nditure of ₹ 6,26,128/- under the head servicing and supplying spare parts of mining machinery to Coal India Limited , as per the agreement dated 02.04.2011, which was amended by a letter dated 18.12.2006. It was the submission that accordingly the balance of ₹ 27,10,883/- remained outstanding. As the amount of ₹ 33,37,011/- which was treated as advance by the assessee, had been appropriated to the extent of ₹ 6,26,128/- towards the servicing and supplying spare parts in respect of Coal India Limited, the amount of ₹ 33,37,011/- was liable to be treated as advance income of the assessee. It was the submission that the ld. CIT(Appeals) wrongly deleted the addition made by the Assessing Officer. 5. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bility is appearing in the books of accounts of the assessee, the same cannot be treated as an income under section 41(1) of the Income Tax Act, 1961. He vehemently supported the order of ld. CIT(Appeals). 6. We have considered the rival submissions. A perusal of the assessment order clearly shows that the assessee has shown the liability of ₹ 27,10,883/- as a liability in its accounts. The amount of ₹ 33,37,011/- clearly is the balance as on 01.04.2006. This is not an amount received by the assessee during the relevant assessment year. A perusal of the modification to the agreement dated 02.04.2001 vide letter dated 18.12.2006 clearly shows that M/s. Rudgormach, Russia has categorically directed the assessee to adjust ..... X X X X Extracts X X X X X X X X Extracts X X X X
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