Issue of ‘treatment of forfeiture of guarantee amount given for purchase of machinery’ , ‘validity of entertaining Revised claim and disallowance u/s 14A

Two appeals were filed before the ITAT. One by the Revenue and another by the assessee related to A.Y. 2002-03 and A.Y. 2006-07 respectively. Details as under:- Brief facts of the cases The assessee company was engaged in the business of manufacturing and sale of Beer as mentioned in the MOA of the company. The assessee company proposes to purchase brewery equipment worth Rs.5.5 crore from M/s Alfa Laval (India) Ltd (‘supplier’), and accordingly a letter of intent (LOI) was issued in May, 1989 between the two parties. As per the terms of LOI, an advance of Rs.1.6 crore, being 30% of equipm...