TMI Blog2023 (10) TMI 1322X X X X Extracts X X X X X X X X Extracts X X X X ..... tain situations, as indicated in sub-clauses (a) to (f) of clause 6. It is also surprising that the AO chose to treat only the difference between the amounts received and spent, as income. In our view. if the amount received was income of the respondent/assessee, then the entire amount should have been treated as income. AO has noted that the aforementioned amount is treated as gross receipt of the respondent/assessee. AO, by treating sum as the gross receipts has, in a sense, indicated that the amount did not bear the attribute of income - no substantial question of law arises for consideration. - HON'BLE MR. JUSTICE RAJIV SHAKDHER AND HON'BLE MR. JUSTICE GIRISH KATHPALIA For the Appellant Through: Mr Sanjay Kumar, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itions is concerned, the amount added by the AO was Rs. 3,95,86,272/-. As regards the other addition, the amount added was Rs. 1,16,573/-. 9. This appeal is confined to the addition made on account of money received by respondent/assessee against the MAP agreements. 10. We may note that record also discloses that the total amount received by the respondent/assessee in the aforementioned year against MAP agreement was Rs. 5,99,00,000/-. 11. Since the MAP agreement required the respondent/assessee to spend money in his capacity as the distributor of Exxon towards marketing, it had spent, against the amount received, Rs. 2,03,13,728/-. 12. Thus, the AO decided to add the difference between the two figures i.e., Rs. 3,95,86,272/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate payment EMPL may at its option demand immediate payment of an amount equal to the Unamorized Balance multiplied by the Amortization Rate, upon the happening of one or more of the following events: (a) If Distributor ceases to trade; (b) EMLPL terminates the Distributor Agreement for any reason; (c) If EMLPL decides in its sole and unfettered discretion not to renew the Distributor Agreement for any reason; (d) If Distributor breaches this Agreement or the Distributor Agreement, and in respect of a breach capable of being remedied, fails to remedy such breach within 7 days of written notice from EMLPL; (e) If Distributor becomes bankrupt or insolvent, or is unable to pay its debts as they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has to provide bank guarantee and there is an obligation to lift the stocks. In case the assessee does not succeed in lifting the stock etc., the proportionate part would not be available to it for onward payment to sub-contractors . The assessee has been consistently following this practice of accounting the amounts under MAP Agreement and the same has been accepted in the assessments completed u/s 143(3) for two immediately preceding assessment years, namely, 2009-10 and 2010-11. The ld. CIT(A) has recorded a categorical finding to this effect in para 1.6 of the impugned order, which has not been controverted by the ld. DR. In the absence of any factual difference in the manner of receipt, disbursement of accounting of the market ..... X X X X Extracts X X X X X X X X Extracts X X X X
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