2021 (11) TMI 411

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....DER Per K. Narasimha Chary , JM Aggrieved by the orders dated 27.01.2017 and 19.04.2017 passed by the Commissioner of Income Tax (Appeals)-9, New Delhi ("Ld. CIT(A)") for the assessment years 2012-13 and 2013-14, M/s. VLCC Health Care Ltd.("the assessee") preferred these appeals. ITA No. 1319/Del/2017 (A.Y. 2012-13): 2. Brief facts of this case are that the assessee company is engaged ....

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....siness. It was the case of the assessee before the authorities below that the contract shows that the amount of liquidated damages was fixed at Rs. 20,000/- per day irrespective of contract value and since the contract relates to bring the profit making apparatus into existence, any damage received on account of such delay amounts to capital receipt. Before the authorities below, the assessee plac....

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....uthorities below that such amounts received from the contractor were debited to the account of the contractor as penalty while making the final payments and thus the payments to the contractors were made short by the amounts of liquidated damages, thereby bringing down the cost of project. 6. It is, therefore, clear that the assessee reduced the cost of project by the amount of liquidated damag....

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....fficer allowed other deductions. It is submitted on behalf of the assessee that the operational revenue of the assessee is around Rs. 258 crores on all India basis and in so far as this particular expenditure of Rs. 6,62,799/- is concerned, this relates to the expenditure of giving gifts to the VIPs and Celebrities which would boost the business of the assessee. Having regard to the magnitude of t....