- (1.) The subject matter of challenge is a judgement and order dated 25th January, 2007 passed by the learned Income Tax Appellate Tribunal, "A" Bench Kolkata in ITA No.664/Kol/2006 pertaining to the assessment year 2002-03, by which the learned Tribunal dismissed an appeal preferred by the assessee and upheld the order of the CIT(A). Aggrieved by the order the assessee has come up in appeal.
(2.) The question formulated at the time of admission of the appeal is as follows:- "Whether on the facts and in the circumstances of the case and on a proper construction of agreement dated 9th March, 1999 between the appellant company and M/s. UTI Bank Limited, the Tribunal erred in law in holding that the payment of Liquidated damages of Rs. 50,71,328/- by the appellant Company to UTI Bank Ltd. was payment of Dividend and not allowable/deductible expenditure in the hands of the appellant company under the Income Tax Act, 1961 ?"
(3.) The facts and circumstances of the case, briefly stated, are as follows:-;