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2012 (5) TMI 652 - AT - Income TaxDepreciation computation - Held that:- This matter can easily be verified by the assessing officer and the explanation of the assessee in this regard can be checked from the records by the assessing officer. In these circumstances, we agree with the order of the CIT insofar as this issue is concerned referring to the matter to the AO for arithmetical verification and reconciliation between depreciation which in effect is debited to the profit and loss account and the amount which is added back in the memo of income, who will decide the issue after giving reasonable opportunity to the Assessee. Provision made towards mine closure obligation - revision u/s 263 - Held that:- It is observed that the basis of calculation for the relevant AY 2006-07 for ₹ 71.18 crores was submitted during the original assessment and accepted by the AO. The detailed calculation of ₹ 21.31 crores charged to P&L A/c (on the basis of ₹ 71.18 crores) was also enclosed and produced before the CIT. Hence, the CIT is wrong in his observation that the estimate of ₹ 21.31 crore is excessively on a higher side and absolutely no realistic or rational basis for such calculation. The CIT is not correct in invoking the provisions of Sec.263 as we find that the issue is debatable and when two views are possible the Assessing Officer has taken one view. The provisions for an accrued existing liability, even though, the actual expenditure may take place at a later date, is an allowable deduction and the CIT erred in treating it as an unascertained liability. Therefore, we set aside the order of the CIT passed u/s 263 and the order of the AO is restored.
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