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2014 (12) TMI 1170 - AT - Income TaxDisallowance of provisions for expenses - Held that:- It is to be seen that provision was made looking to the nature and quantity of expenses on a bona fide estimate. Had the assessee was having exact details of expenses then it could have quantified the expenses. It has made the provision because it was difficult to quantify the expense with supporting details. Thus n our opinion the assessee made the provision on a bona fide belief, while setting off the provision with the actual, certain amounts resulted to be excess. The moment such excess amount resulted assessee has returned it back and offered it for taxation. If this amount is disallowed here then it will be taxed twice, once in this assessment year and again in the year in which assessee has offered it. Whenever any provision is made for the expenses some plus and minus is possible because provision cannot be made with exactness. As far as the other aspect is concerned that assessee has offered it for the next year, we are of the view that after adjusting the account when assessee realized the real facts it offered the excess provision for taxation immediately in the subsequent year. Thus, looking into the entire facts and circumstances we are of the view that the disallowance does not call for and we delete the same. - Decided in favour of assessee.
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