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Loss due to Encashment of Bank Guarantee allowable
Case Law Details
- Case Name
- Ogene Systems India Limited Vs ITO (ITAT Hyderabad)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2014-15
- Courts
- All ITAT, ITAT Hyderabad
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Ogene Systems India Limited Vs ITO (ITAT Hyderabad)
Impugned encashment of bank guarantee is outcome of failure to perform its contractual obligation only without involving any offence or penal component u/s.37(1) of the Act. we find that a catena of case law holds that such an encashment of bank guarantee is incurred in the normal course of business than involving any penalty element at all. We adopt the very reasoning herein as well and direct the Assessing Officer to delete the impugned disallowance/addition in issue.
FULL TEXT OF THE ORDER OF ITAT HYDERABAD
This assessee�...
