2019 (1) TMI 1366

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....e profit and loss account for the year under consideration is in the nature of liquidated damages and is allowable deduction in the A.Y. 2007-08? (ii) Whether on the facts and in the circumstances of the case and in law, the Tribunal is correct in holding that while computing income under Section 10A of the Act the expenses incurred in foreign exchange towards technical services provided outside India if reduces from the export turnover should also be excluded from total turnover?   2. Question no.(i) arises in following background. 3. The respondent assessee is a company registered under the Companies Act. In the return filed for Assessment Year 200708, the assessee had claimed a sum of Rs. 2.38 crores (rounded of) by way of ....

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....6. At the outset, we may notice that the Assessing Officer had raised only one objection to the claim being contingent in nature. The facts on record would show that the agreement contained a clause under which, the assessee would have to pay 0.5% of the total contract value for every week or part thereof for the delay in execution of the work subject to ceiling of maximum 5% of the total contract value. The fact that there had been delay in execution of the work of the assessee is not in dispute. Under the circumstances, the liability of the assessee to pay the sum to the HPCL as per the said clause had arisen. The liability thus, had crystallized and cannot be said to be a contingent liability. 7. The objection of the Counsel for the R....