2023 (10) TMI 1322

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.... 1.1 According to the appellant/revenue, there is a delay of 116 days in filing the appeal. 2. Having regard to the period of delay, we are inclined to condone the delay in filing the appeal. 3. Accordingly, the prayer made in the application is allowed. 4. The application is disposed of, in the aforesaid terms. ITA 555/2023 5. This appeal concerns Assessment Year (AY) 2013-14. 6. Via the instant appeal, the appellant/revenue seeks to assail the order dated 22.11.2022 passed by the Income Tax Appellate Tribunal [in short, "Tribunal"]. 7. The record shows that the Assessing Officer (AO) had made the following two additions to the declared income of the respondent/assessee: (i) First, money received under Marketi....

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....inted out by Mr Kumar that appeals to this court were not preferred in the said AYs on account of the tax impact being below the prescribed threshold limit. 15. During the course of the arguments, Mr Kumar has fairly placed before us the order dated 04.10.2018 passed by the Tribunal in the two cross-appeals preferred before it i.e., 3986/Del/2015 preferred by the revenue and ITA No. 2421/Del/2015 preferred by respondent/assessee. 16. A perusal of a hardcopy of the said order reveals that in AYs 2009-10 and 2010-11, the AO had framed an assessment order under Section 143(3) of the Income Act, 1961 [in short, "Act"] without making any addition with regard to money received by the respondent/assessee against the MAP agreements. Furthermo....

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....per the above clause, Exxonmobil Lubricants Pvt. Ltd., has a right to demand immediate payment if the conditions given hereinabove are violated. First Schedule to the Agreement provides that the effective date of MAP agreement is 01.06.2010 and the maturity date is 31.05.2011. Similarly, there is next Agreement for RS. 21.25 lac, whose effective date is 1st July, 2010 and maturity dates of other two Agreements are concerned. Total amount under these four Agreements comes to RS. 1,91,65,000/-, which pertains to part of the year under consideration and the remaining part to the subsequent year. The assessee, in turn, is passing over the amount of incentive given under the MAP Agreement to the sub-distributors at the time of their lifting the ....

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.... agreement have not undergone any change. The clauses referred to in the order dated 04.10.2018 continue to obtain. 18. A perusal of the clauses would show, as noted by the Tribunal, even for AY 2011-12, that the amount received by the respondent/assessee in his capacity as a distributor was passed on to sub-contractors as and when they lifted the goods in issue. 19. Clause 6 of the MAP agreement, as extracted hereinabove, would show that the amount received under the MAP agreement by the respondent/assessee was conditional and was liable to be returned to Exxon in certain situations, as indicated in sub-clauses (a) to (f) of clause 6. 20. It is also surprising that the AO chose to treat only the difference between the amounts rece....