COMMISSIONER OF INCOME TAX Vs. EXCEL FASHION PVT LTD
HIGH COURT OF DELHI
COMMISSIONER OF INCOME TAX, DELHI-IV, C.R.BUILDING NEW DELHI
EXCEL FASHION PVT. LTD.
Click here to view full judgement.
V.B.GUPTA, J. -
(1.) This appeal has been filed by the Revenue under Section 260 A of the
Income Tax Act, 1961 (for short as 'Act') against the order dated 5th September,
2005 passed by Income Tax Appellate Tribunal (in short as 'Tribunal') in ITA
No.1260/Del/2002 for the assessment year 1994-95.
(2.) Vide impugned order, the Tribunal allowed deduction of Rs.3,58,563/-
under Section 36(1)(vii) of the Act on account of export incentives which became
irrecoverable during the year under consideration. The Tribunal also allowed
the liability of Rs.14,35,072/- payable to M/s. Old Village Industries Ltd. by
inter alia holding that there was no good reason brought on record by the
Assessing Officer to doubt genuineness of the liability.
(3.) Brief facts of the case are that Assessee in three assessment years
i.e. 1989-90 to 1991-92 credited a sum of Rs.5,80,527/- in its Profit and Loss
A/c on the basis of mercantile system of accounting. However, the Assessee
received a sum of Rs.2,21,964/- only against such provision. The balance of
Rs.3,58,563/- not received by him was considered as irrecoverable and the same
stood written off for the year under consideration. The Assessing Officer
disallowed the claim as the Assessee gave different explanation and no document
was filed in support of the claim.;
Copyright © Regent Computronics Pvt.Ltd.