TMI Blog2014 (3) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... /Bharuch has been accounted under Prior Period Expenses during the year - If for some reason even after laying the pipeline, the liability had not crystallized and was therefore open for the assessee to postpone the expenditure or the provision - the assessee had to demonstrate how during the current year, such liability could be claimed as having crystallized - There is nothing on the record to suggest that liability for such prior period expenses crystallized during the said period – Decided against Assessee. - TAX APPEAL No. 1123 of 2013 - - - Dated:- 11-2-2014 - MR. AKIL KURESHI AND MS. SONIA GOKANI, JJ. FOR THE APPELLANT : MR MANISH J SHAH, ADVOCATE ORDER (PER : HONOURABLE Mr. JUSTICE AKIL KURESHI) This Appeal i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion has been made in the present year as per the letters for payment of lease rent received from GIDC during the present year. We do not find any merit in this connection because as per the letter dated 25.2.1998 available on pages 148 and 149, the liability was worked out for the period from 1990 to 1997 on that day and hence, it cannot be accepted that the liability was not crystallized during that year only because no formal letter was received from GIDC asking the assessee to make payment. Hence, we feel that the liability relating to the present year of Rs. 43,87,752/= in respect of GIDC Ankleshwar and Rs. 1,03,272/= in respect of GIDC, Bharuch should be allowed in the present year because the same are related to the present year but t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the rent was for the entire period between 1990 to 1997. Reliance on the documents placed on record by the learned counsel for the appellant would not change this position. In the letter dated 25th February 1998 written by the officer of the appellant-company to its Company Secretary, all that comes out is that GIDC was in the process of recovering the rent from the appellant for the pipelines laid in the GIDC Estates in Ankleshwar and Bharuch. Such liability, as per the said letter, was estimated at Rs. 2.36 Crores for the period between 1990 to 1997. At page 3 of the paper book supplied to us, we find a statement of breakup showing year-wise liability of lease rent for Ankleshwar as well as Bharuch GIDC estates. In the return filed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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