therefore, observed that it is in the nature of
liquidated damages or discounts like dispute on performance incentives, discount
differences, poor quality materials and hence ... further observed that such
reasons for write of as liquidated damages liable be allowed in the year of short
payment or when the amount withheld
upholding disallowance of Rs. 1,34,98,850/- being the
liquidated damages provided on account of delay in supply of machines.
2.1. That ... case and in law, the
CIT(A) erred in not appreciating that damages were provided in terms of
specific contractual obligation, which cannot be termed
appeal is about the disallowance of Rs. 7,93,793 out of damages for breach of contract payable by the assessee to a foreign buyer ... goods. A dispute arose between the assessee and Hardy who claimed damages for breach of contract. Later, another contract dated February 23, 1984, was reached
question of consideration for other
factors such as tests and inspection, liquidated damages and defect liability
requires examination at the level ... will examine as to whether
the costs for tests and inspection, liquidated damages and defect liability along
with any such other costs are specifically charged
nature of capital receipt being payment of
damages for breach of contract.
2. That on the fact and circumstances of the case ... bank. Therefore, assessee was refunded the purchase price as well as
damages. Hence, assessee contested that such damages for breach of
contract are not revenue
facts & circumstances of the case.
Issue 1 - Treatment of liquidated damages receivable from
Enfinity Solar Solutions Private Limited, on account of delay ... Assessing Officer ('AO') has erred in holding that the
liquidated damages, amounting to Rs.7,58,05,766/- receivable from
Enfinity Solar Solution
Eviction of Unauthorised Occupants) Act, 1971 , the assessee was required to pay damages of Rs. 25,821.60 at the rate of Rs. 130.50 per month ... Unauthoried Occupants) Act, 1971 . Without prejudice, it was submitted that the damages being charged were more, and should be reduced. During the course of emergency
consideration
relate to disallowance of provisions for warrantee and disallowance of
liquidation damages. The quantum may differ in both the appeals ... assessee.
15
30. Next issue relates to disallowance of liquidated damages.
31. We find that a similar issue arose before the Tribunal
other
disallowances/additions in the final assessment order
which pertained to liquidated damages, addition in
6
ITA 1057 ... however, gave
relief to the assessee in respect of liquidated damages,
addition in respect of advances and deposits written off
and addition relating to provision
Ground No. 3 relates to disallowance of provision of liquidated
damages.
6. Ground No. 4 relates to disallowance out of expenditure in
foreign currency ... grounds is allowed.
6
Disallowance of provision of Liquidated Damages.
14. A similar issue was considered by the co-ordinate bench in
Assessment Year
