2015 (1) TMI 746

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....hat (Open Court) 1. The following questions of law were framed in the present appeal by order dated 12.05.2000. (i) Whether the Income Tax Appellate Tribunal is correct in law and on facts in upholding this disallowance of an amount of Rs. 1, 60, 00,064/-, being a contractual trading liability incurred in the nature of additional cost of material, holding the same to be a liability contingent on....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ors Shahji International Pvt. Ltd. and Oswal Soap and Allied Industrial Pvt. Ltd. for purchase of imported Palm Sterline Fatty Acid. These agreements with the said importers were identically worded. The imported material was to be purchased by the assessee and the CIF price, custom duty, clearance charges etc., and 3% of the total cost. In terms of Clause 11 any liability arising after sale of imp....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ed as Oswal Agro Mills Ltd. vs. Commissioner of Income Tax ITA No.41/2000 decided on 07.02.2014. This Court had discussed the relevant case law on the subject and especially relied upon the judgment of the Supreme Court in Kedarnath Jute Manufacturing Co. Ltd. v. CIT: (1971)82 ITR 363 (SC), Calcutta Co. ltd. v. CIT: (1959) 37 ITR 1 (SC) and the judgment reported as Bharat Earth Movers v. CIT: (200....