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2013 (6) TMI 22 - ITAT CHANDIGARHAddition on account of payment related to OTS (one Time Settlement) for intention paid to District Coop Banks under Interest subvention scheme - Held that:- It is settled principle of law that an item of expenditure or income has to be dealt in accordance with principle of law and not with the accounting treatment given by the assessee in the books of account. See Kedarnath Jute Manufacturing Co. Ltd. V CIT [1971 (8) TMI 10 - SUPREME Court] & Sutlej Cotton Mills Limited Versus CIT [1978 (9) TMI 1 - SUPREME Court]. As at the same time it is also a fact that scheme as well as calculation of interest etc. was not available before the Assessing Officer - set aside the order of the ld. CIT(A) and restore the matter to the file of AO to decide then issue after going through the documents filed by way of additional evidence. In favour of assessee for statistical purposes. Disallowance of general charges - Held that:- This expenditure cannot be treated as revenue expenditure. Money was paid towards extension charges to HUDA for non construction of the building. At best it can be called "improvement of asset" i.e. the appreciation in the value of land because Bank seems to retain the land without committing the funds towards building to realize appreciation in the land. Nothing wrong with the order of the CIT(A) in confirming additions - against assessee.
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