TaxTMI 
TaxTMI 
2004 (2) TMI 292
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....e detailed information, submission of detailed tenders and followups, bidding for foreign construction and consultancy projects etc." 3. The assessee claimed Rs. 11,79,818 as expenditure in its International Contracts division for obtaining new contracts. The AO following the assessment order as also CIT(A) order in the preceding year disallowed these expenses as being of capital nature. In appeal, the CIT(A) confirmed the addition following his predecessor's order in the preceding year observing that no other facts were brought before him to differ the order from his predecessor in the case of the assessee for earlier year. 4. The learned counsel for the assessee submitted that this ground is covered in favour of the assessee by deta....
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....y/booking deposit received in earlier years from the parties in respect of its Palam Vihar and other projects and despite non-presentation of cheques by the parties, the company continued to own the liability to these parties and the payments were to be made as and when approached by the parties. It was further submitted that there was no waiver or remission of liability during the year. The CIT(A) however did not agree with the appellant and held that in view of the fact that cheques which were issued for the liability of the assessee was neither encashed nor revalidated, the liability of the assessee ceased to exist at the end of the accounting year and upheld the addition. 9. The learned authorised representative for the assessee subm....
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....ssessee had received the amount or benefit by way of cessation or remission of the liability in regard to the said amount. (i) CIT vs. Kharaiti Lal & Co. (1989) 80 CTR (P&H) 49 : (1989) 178 ITR 265 (P&H) (ii) CIT vs. Lal Textile Finishing Mills (P) Ltd. (1990) 81 CTR (P&H) 13 : (1989) 180 ITR 45 (P&H) (iii) CIT vs. Combined Transport Co. (P) Ltd. (1988) 74 CTR (MP) 140 : (1988) 174 ITR 528 (MP) (iv) CIT vs. Haryana Co-operative Sugar Mills Ltd. (1985) 44 CTR (P&H) 46 : (1985) 154 ITR 751 (P&H) 11. The learned authorised representative also relied upon the decision reported as CIT vs. Chougule & Co. (P) Ltd. (1991) 92 CTR (Bom) 35 : (1991) 189 ITR 473 (Bom) in support of the proposition that in the absence of any material brou....
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....ion inter alia observing that the amount of Rs. 8,70,978 had not been claimed by the assessee as a debit in the P&L a/c and in view of the nature of transaction and the circumstances of the case, he was of the opinion that no addition on this account was called for. 13. The learned Departmental Representative relied upon the CIT(A)'s order and further added that as in the previous year, the issue may be restored to the file of the AO for verification whether these amounts had been claimed as debits in the P&L a/c, in the earlier years and of nature of these amounts. 14. We have considered rival submissions, the material on record and the judicial pronouncements cited by the learned authorised representative for the assessee and find f....
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.... company declared long-term capital gain at Rs. 1,93,850 which is not in dispute. With respect to factory building, the assessee reduced the sale proceeds from the WDV and additions during the year of the relative block of assets, i.e., buildings owned by the assessee in various units entitled to the same rate of depreciation. According to the assessee, since the sale value of the factory building did not exceed the value of that block, there was no assessable gain under s. 50 of the IT Act. According to the assessee, although the company owned assets in different divisions, branches, units, etc., the assets falling within the same class and group of assets and entitled to same rate of depreciation shall collectively form a single block. Th....