2016 (1) TMI 1128

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....ssing Officer has challenged correctness of the order dated 29th February, 2012, passed by the learned CIT(A) in the matter of assessment under section 143(3) of the Income-tax Act, 1961, for the assessment year 2009-10. 2. Grievance raised by the Assessing Officer is as follows :-  "1. The CIT(A) has erred in law and on facts in deleting the addition of Rs. 2,90,20,000/- made by the Asses....

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....d already made. Under these circumstances, the quality claim cannot be said to be contingent or uncertain liabilities. Here is a case in which the claim is quantified but even in a situation the claim is not quantified but only reasonably estimated the deduction is admissible. As observed by Hon'ble Supreme Court in the case of Bharat Earth Movers Ltd. Vs. CIT [(2000) 245 ITR 428 (SC)], "The law i....

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....its that since all the foreign bills were purchased by the buyer, and the assessee had already received the sale proceeds, there was no loss to the assessee. This argument, however, proceeds on the fallacious assumption that banker purchases bills drawn on the buyer, and he has no recourse to the assessee. Even though in the banking terminology such transactions of loan against receivables from fo....