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2010 (1) TMI 869 - AT - Income TaxWritten off of capital advance - claim of deduction u/s 37(1) - held that:- said amounts were advanced in earlier years on capital accounts and not in the trading operations. - held that:- Neither the amount can be allowed as deduction u/s.36(1)(vii) nor u/s.37(1). In the same manner it cannot be considered as a revenue loss u/s.28. Deduction in respect of payment/reversal of items disallowed u/s.43B - Assessing Officer did not consider the claim – Held that:- CIT(A) has directed the Assessing Officer to verify the assessee's claim in this regard and then allow the permissible deduction as per law, there is no infirmity in directing the Assessing Officer to conduct verification of the assessee's claim in this regard, ground is not allowed. Disallowance of provision for leave encashment - A.O. held that the provision for leave encashment was in the nature of contingency and hence not deductible.[Bharat Earth Movers Ltd(2000 - TMI - 5816 - SUPREME Court)] - CIT(A) allowed the deduction - judgment of the Hon'ble Supreme Court has been nullified by the legislature by insertion of clause (f) to section 43B with effect from assessment year 2002- 2003. - For the assessment year 1998-99, the ratio of the Hon'ble Supreme Court judgment will apply with full force.
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