1991 (11) TMI 26

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....ter referred to as " the assessee "), was assessed on an income of Rs. 24,69,530. The assessee had received a sum of Rs. 13,43,000 in respect of an award in arbitration proceedings, interest of Rs. 11,48,575 and Rs. 38,641, and costs of Rs. 1,054. These formed the subject-matter of assessment. While computing the income, the Assessing Officer deducted a sum of Rs. 66,808 claimed by the assessee to have been incurred for earning the award amount. The assessee challenged the assessment in appeal before the Commissioner of Income-tax (Appeals). By order dated January 30, 1987, the Commissioner of Income-tax (Appeals) modified the income as assessed on the following scores : (i) The amount received as refund of security deposit was to be exc....

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....he execution of the contract, constituted an error apparent from the record which was rectifiable. The Tribunal, by its order dated December 18, 1990, which is annexed as annexure-1 to the writ application, held that the arbitration expenses were not expenses for construction work and constituted a separate item. This was held to be an obvious position and the Tribunal directed its order dated March 9, 1990, to be modified to the extent that the arbitration expenses of Rs. 66,808 were to be separately allowed as deduction, as done by the Assessing Officer and the rate of 12.5 per cent. was to be applied only on the balance, The stand of the Revenue in this writ application is that the Tribunal considered that expenses incurred in connect....