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2011 (5) TMI 536 - DELHI HIGH COURTPrior period expenditure disallowed - Appellant's arguments are that the AO did not consider that as per the accounting policy being followed by the appellant the expenses below Rs.5,000/- are always accounted for in the year in which they are incurred - Held that:- The Tribunal followed the decision in the assessee‟s own case for the assessment year 1984-85 to allow the expenses - Decided in favour of assessee. Deductions under Section 80P(2)(d) - Held that:- There is no dispute that the assessee was entitled to claim deduction in respect of the dividend received from other co-operative societies as per provisions of Section 80P(2)(d), in case it was so able to prove the same on record. We do not see any infirmity or perversity in the order of the CIT(A) and the Tribunal in this regard whereby the matter has been remitted back to the Assessing Officer to verify the exact amount of the claim from Annexure 9 of the Tax Audit Report and allow the same as per law. The contentions raised by the Revenue stand rejected. Indirect expenses related to PSS operations - Held that:- It is not the case of the Revenue that the expenses had not been incurred by the assessee for the purpose of business or that they are not genuine - CIT(A) and the Tribunal rightly recorded the gross impropriety committed by the AO in assuming indirect expenses on proportionate basis to the total sale of the assessee - It has been seen from the tenor of the scheme of PSS that the assessee was only entitled to reimbursement of the direct expenses as prescribed by GOI and this arrangement/scheme is not challenged either by the Revenue or by the Special Auditor - Decided in favour of assesee.
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