The Pr. Commissioner of Income Tax -6 v. Nokia Solution & Networks India P. Ltd

RAJIV SHAKDHER, J. (ORAL):

¶1This appeal concerns Assessment Year (AY) 2007-08.

¶2Via this appeal, the appellant/revenue seeks to assail the order dated

31.01.2018 passed by the Income Tax Appellate Tribunal [in short, "Tribunal"].

¶3The questions of law, as proposed by the appellant/revenue, read as follows:

2.1 Whether on the facts and circumstances of the case ld. ITAT/CIT(A) erred m deleting of Rs.3,24,11,982/- made by Assessing officer on account of provision for liquidated damages claimed in the profit and loss account by the Assessee even when the provisions are unascertained liabilities, hence were not admissible under the provision of Income Tax Act,1961?

ITA 823/2018

2.2 Whether on the facts and circumstances of the case ld. ITAT/CIT(A) erred m deleting of Rs.3,24,11,982/- made by Assessing officer on account of provision for liquidated damages claimed in the profit and loss account by the Assessee by not considering the fact that the assessee was following the mercantile systems of accounting and the law does riot allow the claim of unascertained liabilities?

2.3 Whether on the facts and circumstances of the case ld. ITAT/CIT(A) is legally in dismissing the appeal of the Revenue on the basis of earlier order in the assessee's own case despite the fact that principle of res,judicata is not applicable to income tax proceedings as each assessment year is a separate proceeding year?

¶4The issue which arises for consideration in the present appeal preferred by the appellant/revenue, also arose for consideration in ITA No. 761/2018, which was on our board today.

¶5In ITA no.761/2018, we have passed an order today remanding the matter for reconsideration by the Tribunal.

¶6The observations and directions contained therein will apply mutatis mutandis to this matter as well.

¶7Accordingly, the impugned order dated 31.01.2018 is set aside.

7.1. The matter is remanded to the Tribunal.

7.2 Parties will appear before the Tribunal on 28.08.2023.

¶8The appeal is disposed of, in the aforesaid terms.

(RAJIV SHAKDHER) JUDGE

(GIRISH KATHPALIA)

JUDGE

JULY 28, 2023/as

ITA 823/2018 2$~7 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Decision delivered on: 28.07.2023 + ITA 823/2018 THE PR. COMMISSIONER OF INCOME TAX -6 ..... Appellant Through: Mr Ruchir Bhatia, Sr. Standing Counsel with Ms Deeksha Gupta, Advocate. versus NOKIA SOLUTION & NETWORKS INDIA P. LTD. ... Respondent Through: Mr Deepak Chopra and Mr Ankul Goyal, Advs. CORAM: HON'BLE MR. JUSTICE RAJIV SHAKDHER HON'BLE MR. JUSTICE GIRISH KATHPALIA [Physical Hearing/Hybrid Hearing (as per request)]