TMI Blog2021 (7) TMI 1137X X X X Extracts X X X X X X X X Extracts X X X X ..... HATURVEDI, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER Assessee by: --None-- Revenue by : Shri Mahesh Thakur, Sr. D.R. ORDER PER ANIL CHATURVEDI, AM: This appeal filed by the Revenue is directed against the order dated 28.03.2018 of the Commissioner of Income Tax (Appeals)- 43, New Delhi relating to Assessment Year 2008-09. 2. The relevant facts as culled from the material on records are as under : 3. Assessee is a company which stated to be tax resident of USA and stated to be engaged in the business of telecommunication equipment worldwide, software and marketing of telecom related equipments. Assessee filed its return of income for A.Y. 2008-09 on 29.09.2008 declaring total taxable income of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee s income when the financials as well as the audit report of the assessee is silent on the reasons for reversal of the provisions for liquidated damages? 3. Whether on the facts and in the circumstances of the case, the CIT (A) has erred in holding that the liquidated damages are deductible expenditure from the assessee s income relying upon the decision of the Hon ble ITAT in case of DCIT Vs M/s Nice Projects Private Limited ignoring the fact that the said decision has not been accepted by the Department and an appeal has been filed before the Hon ble High Court U/s 260A of the Act which is pending for adjudication? 4. The appellant prays for leave to add, amend, modify or alter any grounds of appeal at the time of o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liquidated damages was submitted. AO also noted that assessee has not submitted any material supporting the claim of so called liquidated damages. He thereafter held that the claim of liquidated damages amounting to ₹ 4.37 crore to be unproved and unsubstantiated and therefore allowed the claim of ₹ 50,24,239/- and the balance amount of ₹ 3,87,12,148/- was disallowed. Aggrieved by the order of AO, assessee carried the matter before the CIT(A). The CIT(A) while deleting the addition made by AO has given a finding that the amount of ₹ 3,87,12,148/- where actually liquidated damages which were deducted by BSNL/MTNL for execution of contract relating to supplies made to them and the liquidated damages were in the natu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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