Drawings/designs supply and erection supervision fees from German contractor: designs non-taxable; supervision taxed as FTS/PE depending on six-month ...
Imported analyser diagnostic cartridges treated as accessories with analyser system, not standalone diagnostic reagents; extended limitation and penal...
Steel-timber construction shuttering/formwork tariff classification dispute: essential character held steel, classified as shuttering under Heading 73...
ITAT allowed the assessee's appeal and set aside the reassessment and consequent disallowance. It held that reopening of assessment was invalid as the original assessment under section 143(3) had been completed after scrutiny and no fresh tangible material indicating suppression or omission by the assessee was found to justify "reasons to believe" escapement of income. On merits, ITAT held that late delivery (L.D.) charges were contractual payments for delayed supply of goods, not a penalty for infringement of law, and thus constituted allowable business expenditure under section 37. The disallowance of L.D. charges was therefore unsustainable.
ITAT allowed the assessee's appeal and set aside the reassessment and consequent disallowance. It held that reopening of assessment was invalid as the original assessment under section 143(3) had been completed after scrutiny and no fresh tangible material indicating suppression or omission by the assessee was found to justify "reasons to believe" escapement of income. On merits, ITAT held that late delivery (L.D.) charges were contractual payments for delayed supply of goods, not a penalty for infringement of law, and thus constituted allowable business expenditure under section 37. The disallowance of L.D. charges was therefore unsustainable.
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