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PER N.K. CHOUDHRY, J. M.:

1. The Assessee has preferred the instant appeal against the order dated 12.11.2018, impugned herein, passed by the Ld. Commissioner of Income-tax (Appeals)-14, New Delhi (in short 'Ld. Commissioner) u/s 250(6) of the Income-tax Act, 1961 (in short "the Act"), for the assessment year 2015-16, whereby the assessment order passed by the AO u/s 143(3) of the Act was upheld.

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2. Brief facts of the case are that the Assessee is engaged in the business of importing "used digital multifunctional printer and copying machines" and during the year under consideration had e-

3. The said addition was challenged before the Ld. Commissioner by the Assessee and in support of its case it was claimed that the said expenses/payments are allowable u/s 37(1) of the Act as the same are compensatory in nature and not covered under explanation 1 to section 37(1) of the Act. The Assessee before the Ld. Commissioner also relied upon the various judgments as mentioned by the Ld. Commissioner in its order in para No. 4.1.

3.1 The Ld. Commissioner while considering the claim of the Assessee, observed that the Assessee has imported old and digital multifunction printer and copying machines which are classified as electrical and electronic assembled machines destined for direct use and not for recalling or final disposal and these items were falling under the entry B1110 of part B of schedule III of Hazardous Wastes (Management, Handling and trans boundary Movement) Page | 3 Rules 2008 read with Environment Protection Act, 1986. These items can be imported only with the prior permission from Ministry of Environment and Forests. The Ld. Commissioner further observed that there was difference in the invoice value of the good and custom valuation and therefore, fine has been imposed in addition to the duty payable on the import of the goods including additional duty payable on account of valuation difference.

5 Heard the parties and perused the material available on record. In the instant case the Assessee during the year under consideration imported old and digital multifunction printers and copying machines classified as electronic and electronic assembled machines for direct use and not for recalling or final disposal as Page | 8 claimed by the Assessee. The goods of the Assessee wereconfiscated for violation of provisions of customs Act, 1962 by the Joint Commissioner of Customs, Group-V, NahavaSheva I, TalukaUran, District Raigarh, Maharashtra 400707, vide various orders, including order dated 14.03.2015(we are quoting for reference only) andconsequently the Assessee was given an option to redeem the goods on payment of fine of Rs. 2,15,000/-. Further, the Joint Commissioner of Customs also imposed penalty of Rs. 68,000/-. For ready reference the relevant part of the order is reproduced herein below:-