Case Law Details
Punitive charges paid by the assessee to Railways for overloading of the wagons is compensatory in nature, therefore, the same cannot be disallowed
Taurian Iron & Steel Co. Pvt. Ltd. Vs. Ad. CIT (ITAT Mumbai)- In the case of Haji Aziz And Abdul Shakoor Brothers (supra) it was held that fine paid to the Custom Authorities was in fact penalty u/s 167 (8C) of the Customs Act. It was held by the Hon’ble Apex Court that such penalties which are incurred by an assessee in proceedings launched against him for an infraction of the law cannot be called commercial losses incurred by an assessee in carrying on his business. In the case of Rohit Pulp & Paper Industries (supra) the Deputy Collector of Customs had ordered confiscation of goods under section 111(d) of the Customs Act read with section 3 of the Imports and Exports (Control) Order. He gave an option to the assessee under section 125 of the Customs Act to pay in lieu of confiscation, a fine of Rs. 35,000. This payment was in the nature of penalty and accordingly it was not allowable as a deduction under section 37 of the Act. However, in the instant case as we have already held earlier that the punitive charges paid by the assessee to Railways for overloading of the wagons is compensatory in nature, therefore, the same cannot be disallowed by invoking the provisions of Explanation to section 37(1) of the Act. In this view of the matter and in view of the detail discussion by the ld. CIT(A) we do not find any infirmity in his order. Accordingly the same is upheld. The ground raised by the Revenue is dismissed.
INCOME TAX APPELLATE TRIBUNAL, MUMBAI
ITA No. 847/Mum/2010 – Assessment year: 2006- 07
M/s Taurian Iron & Steel Co. Pvt. Ltd. Vs. Addl. Commissioner of Income Tax, Please become a Premium member. If you are already a Premium member, login here to access the full content.
If consinment loaded under capacity in rake according the rule uniform packing will be weighted only 5%out of 100%rendamly .unteralia we load same bag 1060/1010 according capacity our wheat always load in uniform and standard packing .at origin st wheat must be weight in supervision of reputed company and same at the time of unload.diff in rly weighbridge 90 m.ton and charged 562265rs same deposited by dd under protest a lettar given to Drm and copy to local st chief goods station.
May i can register any claim and may be refund the amount .This type of many cases in which railway charged by il legal way.i can chalange the said weighbridge certificate.
Pls legal advise .
Thanks
Sunilaggarwal
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