ITAT quashes reassessment under section 143(3); allows late delivery charges as deductible business expense under section 37

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....ITAT allowed the assessee's appeal and set aside the reassessment and consequent disallowance. It held that reopening of assessment was invalid as the original assessment under section 143(3) had been completed after scrutiny and no fresh tangible material indicating suppression or omission by the assessee was found to justify "reasons to believe" escapement of income. On merits, ITAT held that late delivery (L.D.) charges were contractual payments for delayed supply of goods, not a penalty for infringement of law, and thus constituted allowable business expenditure under section 37. The disallowance of L.D. charges was therefore unsustainable.....