COMMISSIONER OF INCOME TAX Vs. GLOBAL ASSOCIATES

JUDGEMENT

(1.) The office report indicates that the respondent/assessee was served on 22.05.2014. There is no appearance on their behalf. The Court accordingly proceeds to set them down ex parte.

(2.) The following substantial question of law arises for consideration: -

(3.) The assessee filed its return for the AY 2008-09. In a scrutiny assessment, the AO, inter alia was of the opinion that part of the allowance for liquidated damages claimed in terms of clause 14 (c) of the assessee's contract with an oversees purchaser, i.e., Golden World Enterprises Limited for supply of iron ore fines, had to be disallowed. The assessee's appeals were unsuccessful. In the return filed by the assessee, an allowance was made for liquidated damages under clause 14 (c) which reads as follows: -