TaxTMI 
TaxTMI 
2009 (11) TMI 995
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.... income on 1-11-2004 declaring income of Rs. 26,17,888. The assessment was completed under Section 143(3) of the Act vide order dated 27-12-2006 at an income of Rs. 78,96,080, by making additions on certain accounts. Against the said order, the Assessee preferred an appeal before the Commissioner of Income Tax (Appeals), Faridabad [hereinafter referred to as 'the CIT(A)'], who vide his order dated 14-9-2007 partly allowed the appeal and deleted the additions of Rs. 51,32,183. Against the said order, the revenue filed appeal before the ITAT, which has been dismissed vide the impugned order, while confirming the deletion of two additions, i.e., one of Rs. 48,45,000 on account of undeclared sale price of machinery and the other of Rs. ....
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....agreement. 5 per cent of the contract price for equipment supply was payable as advance payment within 30 days from the date of order of acceptance. 80 per cent was to be paid on the various prescriptions mentioned therein. The other 5 per cent was payable against output of first cold of acceptable quality after satisfactory completion of integrated cold test and other requirements. The remaining 10 per cent was payable after the issuance of provisional acceptance certificate as per the general conditions for design, manufacture and supply of plants and machinery and equipment and the delivery of complete drawings and documents including. "As built drawings" and other requirements. Thus, according to the clause and term of payment, only 85 ....
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....it & Loss Account under the mercantile system of accounting in the assessment year under consideration. 7. The learned CIT(A), while deleting the said additions, has held that as per the terms of the contract, only 85 per cent of the amount was to be received by the Assessee till the supply of machinery in the assessment year under consideration and the remaining 15 per cent amount was payable to the Assessee, after issuance of provisional acceptance certificate and other requirements, therefore, the Assessee had not acquired the right to receive 15 per cent of the price till the conditions of contract were fulfilled. Since the right to receive 15 per cent of the amount did not materialize during the assessment year under consideration, th....
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....e is also covered by the decision of Hon'ble Madras High Court in the case of Ignifluid Boilers (India) Ltd. (supra) . Accordingly, we do not find any infirmity in the order passed by Ld. CIT(A) deleting the addition. 9. After hearing learned Counsel for the Appellant-revenue and going through the impugned order, we do not find any ground to interfere in the aforesaid concurrent findings recorded by the learned CIT(A) and the ITAT. 10. The second addition relates to allowing of depreciation on office equipment and electric installation like transformer or control panels at the rate of 25 per cent as against 15 per cent as allowed by the Assessing Officer. The Assessee claimed the aforesaid depreciation at the rate of 25 per cent by tr....