Interest liability on damage in breach of export allowable when it become a certain liability

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 28^th 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 : 3^rd JUNE, 2011

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