Case Law Details
Allow ability of liability of interest on damage in breach of export only when it gets crystallized into a certain liability
National Agricultural Co-Operative Marketing Federation of India Ltd. Versus CIT (DELHI HC)- In fact the liability on account of interest was to be deductable only when it gets crystallized into a certain liability and that took place only on this court passing a decree and awarding interest after the date of the award till the date of realization. Thus, we are of the view that the liability did not crystallize in the three assessment years 1996-97, 1997-98 and 1998-99,but only came to be crystallized in the year 2000-2001, when this court passed decree on 28th January, 2000 and, therefore, the assessee could not claim deduction for the same in the assessment years 1996-97, 1997-98 and 1998-99. We thus, answer question in affirmative in favor of the Revenue and against the assessee and consequently dismissed the appeal.
IN THE HIGH COURT OF DELHI AT NEW DELHI
ITAs No. 1096/2008, 1138/2008, & 1146/2008
Judgment delivered on : 3rd JUNE, 2011
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