TMI Blog2010 (7) TMI 1214X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 dated 11.11.2009. 2. The Revenue has raised five grounds in its appeal. Ground Nos. 1, 4 5 are general in nature and needs no adjudication, while as the other two grounds culminates into one issue that ld. CIT(A) has erred in deleting the disallowance of speed money amounting to Rs. 14,02,508. 3. The assessee had paid Rs. 1,40,25,087 as speed money to labourers at New Mangalore Port Trus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on appeal, ld. CIT(A) restricted it to 10%. However, Hon'ble ITAT allowed the appeal in favour of the assessee, the matter is now pending before the Hon'ble High Court of Karnataka. Ld. AO took the same stand as in the earlier year inspite of the decision rendered in M/s. Konkan Marine Agency in ITA No. 67/Bang/2000 dated 17.5.04 because the Department is still on appeal before the Hon' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent on appeal before CIT(Appeals). The CIT(Appeals) after analyzing the issue in detail decided the issue restricting the disallowance to 10% instead of 20%. The relevant portion of the order is extracted here below: 4. In the case of M/s. Konkan Marine Agency cited, the Hon'ble High Court of Karnataka has held the payment of speed money, made either through labour or workers union, cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls on record. The assessee has relied upon the decision rendered by the Hon'ble High Court of Karnataka. The relevant portion of the order is extracted here below: 6. The questions that arise in this appeal was considered by this court in I.T.A. No. 603/2004 disposed of by us on 28.7.2008 by holding that taking into consideration the nature of the assessee's business and the prevail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to be allowed as deduction by way of business expenditure . Therefore said decision squarely applies to the present case also and accordingly, we answer the substantial questions against the revenue. The appeal is accordingly dismissed. Considering the facts and circumstances of the case, we are also of the considered view that the assessee's case is quite identical to the case decided ..... X X X X Extracts X X X X X X X X Extracts X X X X
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