Escorts Ltd. Vs. Addl. CIT
Case No: ITA No. 7394/Del/2019
Court: INCOME TAX APPELLATE TRIBUNAL DELHI (DELHI BENCH ‘B’ NEW DELHI)
Date: 3/19/2025
Parties Involved
appellantEscorts Ltd.
respondentAddl. CIT
Facts Summary
The case involves an appeal by Escorts Ltd. against the order of the Commissioner of Income Tax (Appeals)-34, New Delhi, which disallowed a claim of expenditure of Rs. 47,64,00,000/- incurred on the settlement of a corporate guarantee invoked and awarded against the appellant. The expenditure was claimed to have been incurred consequent to a settlement made with M/s L. S. Cables, Korea, following an Arbitration award pronounced by the International Court of Arbitration, Vienna, Austria, against …
Decision in favour of
Assessee
Legal Issues
- 1. Whether the learned CIT(A) erred in disallowing a claim of expenditure of Rs. 47,64,00,000/- incurred on settlement of a corporate guarantee invoked and awarded against the appellant.
- 2. Whether the learned CIT(A) erred in not appreciating that the guarantee was given to a third party to ensure uninterrupted supply of material to a subsidiary of the appellant in the USA.
1 more legal issue analysed in this judgement.
Precedents Relied Upon
18 precedents cited in this judgement.