9911796707
TMI Blog2019 (9) TMI 1501X X X X Extracts X X X X X X X X Extracts X X X X ..... income had accrued or received. (ii) That in the absence of any legal or statutory right or acceptance of claim by other party, there is no case of any such income in the light of principle laid down by Supreme Court in the case of Excel Industries Ltd.(2013)358 ITR 295. (iii) That alleged claims is of contingent nature and there is no justification for any addition on factual or legal basis. (iv) That in any case, if such addition is considered as income, deduction should be allowed in respect of counter claim by other party. 3. Facts of the case, in brief, are that the assessee is a company engaged in the business of technical and engineering consultancy and export sale. It filed its return of income on 27.09.2010 declaring total i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case for A. Y.2008-09 deleted the addition sustained by the CIT(A) on the ground that the amount has not been crystalised and, therefore, the same cannot be treated as income in the hands of the assessee. Further the assessee being a Government undertaking is following a system of accounting as per which the items of income and expenditure are treated as accrued only after the approval is granted by the competent authority. He submitted that the decision of the Tribunal was challenged by the revenue and the Hon'ble High Court in ITA No.404/2-16 order dated 06.12.2016 dismissed the appeal filed by the revenue. Therefore, this being a covered matter in favour of the assessee, the grounds raised by the assessee should be allowed. 6. The Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... zation advance was given by the assessee and therefore it was entitled to the interest. 4. It is evident from the above discussion that the entire matter is contentious in the sense that the third party - RPCL - which was awarded the contract claimed that it had performed it in accordance with the agreement with the parties. The assessee, however, felt otherwise and terminated the contract. There could be several likely outcomes in these proceedings - many of them possibility impinging upon the rights of the assessee to receive advance amount itself along with interest either in whole or in part. In these circumstances, the ITAT's conclusions that there was no crystallized right to receive any particular amount or amounts, cannot be faul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the action of the Assessing Officer. 11. Aggrieved with such order of the CIT(A), the assessee is in appeal before the Tribunal. 12. The Ld. Counsel for the assessee submitted that in absence of recording any satisfaction the Assessing Officer cannot make disallowance u/s 14A r.w Rule 8D. He submitted that under identical circumstances the Tribunal in assesee's own case for A.Y.2009-10 in ITA No.2826/Del/2014 order dated 24.04.2017 has deleted such disallowance. He accordingly submitted that this being a covered matter in favour of the assessee, the ground raised by the assessee should be allowed. 13. The Ld. DR on the other hand strongly supported the order of the AO and CIT(A). 14. We have considered the rival arguments made by both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in view of the judicial precedents of the jurisdictional High Court laid down before us by the Ld. authorized representative. Therefore, respectfully following the judicial precedent of the jurisdictional High Court we direct the Ld. assessing officer to delete the disallowance of Rs. 1125844/- under section 14A of the income tax act applying the provisions of Rule 8D of the Income Tax Rules, 1962. Reversing the finding of the Ld. first appellate authority, we allow ground No. 2 of the appeal of the assessee." 15. Since, the facts of the instant case are identical to the facts of the case decided by the Tribunal in assessee's own case in the preceding year, therefore, respectfully following the same. The grounds raised by the assessee ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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