2008 (11) TMI 38

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....ha and Mr Sriram Krishna CORAM:- HON'BLE MR JUSTICE BADAR DURREZ AHMED HON'BLE MR JUSTICE RAJIV SHAKDHER BADAR DURREZ AHMED, J (ORAL) 1. This appeal is directed against the order dated 29.09.2006 passed by the Income Tax Appellate Tribunal in ITA 2167/Del/2002 pertaining to the assessment year 1998-1999. The issue that is sought to be raised in this appeal relates to the allowabilit....

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....ssessee in relation to this project by way of the amounts received from the parent company (HNS) for services provided, would be taken into account for arriving at the profit earned by the assessee, after deducting actual estimated costs of rendering these services. It was also stated in the said letter dated 06.05.1997 that a final settlement between the parent company and the assessee would be a....

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....and, therefore, no further deduction by way of expenses could be entertained. Consequently, the Assessing Officer disallowed the expenses claimed by the assessee. 4. Being aggrieved by the assessment order, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals) who, by an order dated 28.02.2002, allowed the claim of the assessee towards direct expenses but disallowed t....

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....e in its appeal in respect of direct expenses before the Tribunal. 6. We have examined the material on record as well as the orders passed by the Assessing Officer, the Commissioner of Income Tax (Appeals) and the Tribunal and we note that the Tribunal has confirmed the finding returned by the CIT (Appeals) that the direct expenses incurred by the assessee were allowable as they were identifiab....