THE COMMISSIONER OF INCOME TAX IV, NEW DELHI vs. IKEA TRADING I P.LTD.

IN THE HIGH COURT OF DELHI AT NEW DELHI . 30.11.2009 10# .

Present: Mr. Sanjeev Sabharwal for the appellant. . . + ITA No. 1264/2009 The order of the Assessing Officer was revised by the CIT(A) in exercise of his powers under Section 263 of the Income Tax Act, 1961 whereby the Commissioner had pointed out two purported mistakes in the assessment order, namely :- (a) A sum of Rs.33.66 lacs debited as ?Advance on deposits written off? in the Profit and Loss Account had to be disallowed, which was not done. (b) Rs.36.27 lacs on account of ?Payment for demurrage ? debited in the Profit and Loss Account was also to be disallowed by the Assessing Officer. .

The assessee preferred appeal against this order before the Tribunal.

Insofar as the first purported mistake is concerned, the order of the CIT(A) has been upheld. However, in respect of payment of demurrage, the Tribunal has held that these were fumigation expenses and were incidental to business incurred in the normal course of business and, therefore, rightly allowed by the Assessing Officer.

We find that the view taken by the ITAT is correct in law, in support whereof the Tribunal has referred to various judgments of the Supreme Court and High Courts.

Therefore, no question of law arises for consideration in this appeal, which is dismissed. . . . A.K. SIKRI, J. . . . SIDDHARTH MRIDUL, J.

November 30, 2009 nsk .