CIT Vs. GLOBAL GREEN COMPANY LTD.

JUDGEMENT

(1.) THE relevant orders have been filed by the appellant. We are inclined to condone delay of 99 days in re -filing of the appeal. Application for condonation of delay in refiling being C.M.No.15143/2013 is accordingly disposed of.

(2.) THIS appeal by the Revenue under Section 260A of the Income Tax Act, 1961 (Act) impugns order passed by the Income Tax Appellate Tribunal (for short, the tribunal) deleting penalty under Section 271 (1)(c) of the Act in relation to assessment year 2001 -02.

(3.) THE respondent -assessee was engaged in the business of processing and export of packaged food products like pickle, gherkin, baby corn etc. It had also entered into an agreement for growing vegetables, mushrooms etc. For the assessment year 2001 -02, the respondent -assessee had filed return of income on 31st October, 2001 declaring loss of Rs.20,66,59,696/ -. Subsequently, the loss was revised to Rs.16,51,59,697/ -. In the profit and loss account, the respondent - assessee had made provision for Rs. 59,43,008/ - on account of non - saleable and damaged goods. The Assessing Officer did not allow the debit entry observing that the respondent -assessee did not produce evidence for writing off the said amount in the books and at the same time observed that the entry was nothing but a provision for decrease in the value of assessee's assets. He accordingly held that this amount was not an allowable expenditure and was added back. The said finding was affirmed by the Commissioner (Appeals), who observed that the amount was only a provision in the books.