Liability arise only when the project is completed unless estimated on reasonable basis periodically

Last updated: 08 September 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
Ground of appeal relates to the grievance of the appellant against the action of the Assessing Officer in making an addition of Rs.1,12,53,000/- on account of warranty and other expenses. It was submitted on behalf of the appellant that, the identical addition was made in Assessment Year 2000-01 and the appeal against the same was decided in favour of the appellant company vide order of Commissioner of Income Tax (Appeals)-VII, New Delhi vide her order dt. 18.7.2003 in Appeal no.47/2002-03. The department had preferred an appeal against the order of Commissioner of Income Tax (Appeals)-VII, New Delhi before Hon’ble ITAT, Delhi who vide their order dt. 24.8.2007 dismissed the appeal of the department, thereby confirming the order of Commissioner of Income Tax (Appeals)-VII, New Delhi. The ld.A.R. placed before me the copy of the afore mentioned order of the Tribunal and, therefore prayed that, the addition made for the instant Assessment Year may be deleted in the light of the order of the Hon’ble Tribunal for the Assessment Year 2000-2001. It is also noticed on perusal of the assessment order that the Assessing Officer has made the above addition on the ground that the order of the Hon’ble ITAT for Assessment Year 2000-2001 has not been accepted by the dept. and appeal has been field before the Hon’ble Delhi High Court where the matter is still pending.

Citation :
The Dy.CIT, Circle 4(1) New Delhi (Appellant) Vs. M/s Lurgi India Co.P.Ltd. A 24/10, Mohan Co-Operative Area Mathura Road, New Delhi PAN: AAACL 4255D (Respondent)