Assistant Commissioner of Income-tax, Central-1, Jodhpur v. Karan Singh Khichi
[Citation -2017-LL-0510-6]

Citation 2017-LL-0510-6
Appellant Name Assistant Commissioner of Income-tax, Central-1, Jodhpur
Respondent Name Karan Singh Khichi
Court HIGH COURT OF RAJASTHAN AT JODHPUR
Relevant Act Income-tax
Date of Order 10/05/2017
Judgment View Judgment
Keyword Tags contractual liability • accrual basis
Bot Summary: The questions before us for consideration are as follows :- Whether the Tribunal was justified in dismissing the Revenue s appeal and allowing assessee s cross objection Whether the Tribunal was justified in allowing the deduction claimed by the assessee amounting to Rs.30,00,000/- and if so, whether grounds allowing deduction is legally sustainable. ITA-128/2010 It is submitted by learned counsel appearing on behalf of Revenue that the Tribunal grossly erred while accepting the appeal preferred by the assessee without examining the fact that the expenditure to execute contractual liability could have been allowed on accrual basis basis even if the same has not been actually incurred only if that was a part of contract and would have been subsequently utilized for the purpose given. From perusal of order passed by the Income Tax Appellate Tribunal, it is apparent that the finding arrived is founded on adequate examination of facts and law. The deduction claimed by the assessee is nothing but the amount that incurred in development of parks, drainage, roads, temple and boundary wall etc. These were the contractual liabilities of the assessee. The assessee was under an obligation to satisfy all these contractual liabilities and the plea taken by the Revenue is not sustainable. The appeal, as such, deserves to be dismissed with the finding that the Tribunal rightly allowed the deductions claimed by the assessee for an amount of Rs.30 Lacs.J.J. Sanjay.


HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Income Tax Appeal No. 128/2010 Assistant Commissioner of Income Tax, Central-1, Jodhpur. Appellant Versus Shri Karan Singh Khichi, Director, M/s. Ashapurna Buildcon, Near Circuit House, Jodhpur. Respondent For Appellant(s) : Mr. KK Bissa For Respondent(s) : Mr. Lalit Pareek HON'BLE MR. JUSTICE GOVIND MATHUR HON'BLE MR. JUSTICE VINIT KUMAR MATHUR Judgment 10/05/2017 This appeal is before us to question correctness of order ated 30.9.2007 passed by learned Income Tax Appellate Tribunal, Jodhpur Bench, Jodhpur in ITA No.120/JDPR/2007 for assessment year 2001-02. questions before us for consideration are as follows :- (1) Whether Tribunal was justified in dismissing Revenue s appeal and allowing assessee s cross objection ? (2) Whether Tribunal was justified in allowing deduction claimed by assessee amounting to Rs.30,00,000/- and if so, whether grounds allowing deduction is legally sustainable.? (2 of 2) [ITA-128/2010] It is submitted by learned counsel appearing on behalf of Revenue that Tribunal grossly erred while accepting appeal preferred by assessee without examining fact that expenditure to execute contractual liability could have been allowed on accrual basis basis even if same has not been actually incurred only if that was part of contract and would have been subsequently utilized for purpose given. From perusal of order passed by Income Tax Appellate Tribunal, it is apparent that finding arrived is founded on adequate examination of facts and law. deduction claimed by assessee is nothing but amount that incurred in development of parks, drainage, roads, temple and boundary wall etc. These were contractual liabilities of assessee. assessee was under obligation to satisfy all these contractual liabilities and, therefore, plea taken by Revenue is not sustainable. appeal, as such, deserves to be dismissed with finding that Tribunal rightly allowed deductions claimed by assessee for amount of Rs.30 Lacs. (VINIT KUMAR MATHUR)J. (GOVIND MATHUR)J. Sanjay Assistant Commissioner of Income-tax, Central-1, Jodhpur v. Karan Singh Khichi
Report Error