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2018 (8) TMI 1706 - AT - Income TaxAddition to the total income of the assessee on account of recoveries from abroad for which the assessee has already claimed expenditure in the earlier years - Held that:- Since the facts of the case before us are identical with that of the earlier years, we therefore following the decision of the co-ordinate bench of the Tribunal held that CIT(A) has categorically noted the fact that during the previous year relevant to the assessment year 2009-10 [2016 (2) TMI 157 - ITAT MUMBAI], the assessee after identifying the exporters has paid back the substantial amount which were collected on their behalf and whatever amount could not be identified, the same has been offered as an income in that year. Thus, the whole of the amount has now been accounted for and income has also been offered by the assessee in the assessment year 2009-10. On these facts, we do not find any reasons to deviate from the finding and the direction given by the CIT(A).- decided against revenue Addition on account of changes in the method of estimation of recoveries of claim paid - Held that:- Whatever profit is disclosed in the P & L Account has to be accepted by the AO unless the expenditure is inadmissible under the provisions of section 30 to 43B of the Act. The case of the assessee is also find support from the decision of the Apex Court namely CIT vs. Calcutta Hospital and Nursing Home Benefits Association Ltd. [1965 (4) TMI 12 - SUPREME COURT] wherein it has been held that AO is bound to accept the profit as disclosed in the annual accounts that are filed before the Regulatory body subject to adjustments as prescribed in Clauses (a), (b) and (c) of Rule 5 to the First Schedule. The Hon’ble Supreme Court in the case of General Insurance Corporation of India vs. CIT [1999 (9) TMI 3 - SUPREME COURT] has also held that adjustment is permissible qua an expenditure or allowance which is not permissible under section 30 to 43B of the Act. - Decided against revenue. Accrual of income - Addition on account of revision in the pay-scales of the employees having accrued in the hands of the assessee in the current year - Held that:- In the present case, the revision of pay scale was proposed in December 2005 on the lines of revision of pay scales of LIC by the Govt. of India and thus finally was approved in August 2006 by the Ministry of Commerce, Govt. of India. In our opinion, the Ld. CIT(A) has fully and comprehensively considered the facts of the case and passed a very detailed and reasoned order by holding that the liability provided was ascertained one and was correctly provided for during the year. The case of the assessee is also supported by the decision of the Hon’ble Bombay High Court in the case of CIT vs. United Motors India Ltd. [1989 (9) TMI 73 - BOMBAY HIGH COURT] and Bharat Earth Movers Ltd. vs. CIT [2000 (8) TMI 4 - SUPREME COURT] wherein the similar issue has been decided in favour of the assessee. Addition on account of ISO certification expenses - nature of expenses - revenue or capital expenditure - Held that:- A perusal of the Ld. CIT(A)’s order reveals that the same is very well reasoned order passed after taking into account all the facts and legal aspects of the case. We concur with the conclusion drawn by the Ld. CIT(A) that the expenditure incurred by the assessee for ISO certification in connection with the certification of processing and procedures adopted by the assessee to be in accordance with the prevailing standards in the industry as a whole has not resulted into creation of assets or acquiring any fixed assets. We, therefore, uphold the order of Ld. CIT(A) by dismissing the ground raised by the Revenue.
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