When are liquidated damages, a deductible expenditure from the income of the assessee?

Last updated: 14 August 2021

Court :
ITAT Delhi

Brief :
This appeal filed by the Revenue is directed against the order dated 28.03.2018 of the Commissioner of Income Tax (Appeals)- 43, New Delhi relating to Assessment Year 2008-09.

Citation :
ITA No.4050/Del/2018

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI
BENCH ‘B’, NEW DELHI
BEFORE SH. ANIL CHATURVEDI, ACCOUNTANT MEMBER
AND SHRI KULDIP SINGH, JUDICIAL MEMBER
(THROUGH VIDEO CONFERENCING)
ITA No.4050/Del/2018
Assessment Year : 2008-09

DCIT
Circle – 3(1)(1),
International taxation
New Delhi
PAN – AAACU 5017 A

APPELLANT

UT Starcom Inc.
Shop No.12, A-1/8A,
Ground Floor,
Krishna Nagar,
New Delhi - 110051

RESPONDENT

Assessee by --None--
Revenue by Shri Mahesh Thakur, Sr. D.R.
Date of hearing: 26/07/2021
Date of Pronouncement: 28/07/2021
ORDER

This appeal filed by the Revenue is directed against the order dated 28.03.2018 of the Commissioner of Income Tax (Appeals)- 43, New Delhi relating to Assessment Year 2008-09.

2.Assessee is a company which stated to be tax resident of USA and stated to be engaged in the business of telecommunication equipment worldwide, software and marketing of telecom related equipments. Assessee filed its return of income for A.Y. 2008-09 on 29.09.2008 declaring total taxable income of Rs.37,39,880/-. The case was taken up for scrutiny and thereafter assessment was framed u/s 143(3) r.w.s 144C of the Act vide order dated 18.10.2012 and the total income was determined at Rs.3,19,18,373/-.

3.The case file reveals that there was no appearance on behalf of the assessee. Even on the date of hearing, none appeared on behalf of the assessee nor any adjournment application was filed. In the absence of any representative from the side of assessee, we proceed to dispose of the appeal ex parte qua the assessee after considering the materia on record and after hearing by the Learned DR.

4.Before us, Revenue has not pointed to any fallacy in the findings of CIT(A). In such a situation, we find no reason to interfere with the order of CIT(A). Thus the grounds of the Revenue are dismissed.

5.In the result, appeal of the Revenue is dismissed.
Order pronounced in the open court on 28.07.2021.

Please find attached the enclosed file for the full judgement