Itta/541/2013 Of Commissioner Of Income Tax-Ii, Hyderabad v. M/S., Electronics Corporation Of India Limited

IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH ATHYDERABAD THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTAAND THE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No. 541 of 2013 DATE: 31.10.2013 Between: Commissioner of Income Tax-II,Hyderabad. … Appellant And M/s. Electronics Corporation of India Limited,Hyderabad. … Respondent This Court made the following: THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTAANDTHE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No. 541 of 2013 JUDGMENT:(Per the Hon’ble the Chief Justice Sri Kalyan Jyoti Sengupta) This appeal is sought to be admitted against the judgment and order ofthe learned Tribunal, dated 30.10.2009, on the following suggested questions of law. “(a) Whether on the facts and in the circumstances of the case, theappellate Tribunal is justified in not holding that provision of Rs9.78 crorestowards security expenses, partakes the character of contingent liability inthe absence of grant of specific approval by the competent authority andhence in admissible as deduction for the current year? (b) Whether the construction of the Appellate Tribunal placed on the twoletters dated 1.04.2003 and 07.12.2004 as amounting to grant of approval bythe competent authority is sustainable in law? It appears that the learned Tribunal on fact found that the assessee has incurred security expenditure accrued during the financial year 2003-04relevant for the assessment year 2004-05 and correctly held that the date ofdischarge of the liability at a future date is not material to decide the issue. In view of the above fact finding, we think that the learned Tribunal hascorrectly applied the law and allowed the expenditure. Hence, we do not findany element of law to admit the appeal. The appeal is accordingly dismissed. _____________________ K.J. SENGUPTA, CJ Date: 31.10.2013 ES ____________________ SANJAY KUMAR, J