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2013 (6) TMI 408 - ITAT DELHISwapping premium - Disallowance u/s 36(1)(viii) - Held that:- As decided in assessee's own case [2008 (12) TMI 27 - AUTHORITY FOR ADVANCE RULINGS] swapping premium is nothing but discounted interest and had originated in the long term finance initially advance. The premium is actually traced to the original source and is not kept remedy of business of providing long term finance Provision for bad and doubtful debts - Disallowance u/s 36(1)(viii) - Held that:- As decided in Power Finance Corporation Ltd. v. JCIT [2006 (8) TMI 332 - ITAT DELHI] the presentation of the concerned amount under schedule of Reserve and Surplus was based on the mandate of CAG but its nature and character remains tile same as (envisaged under clause (viia)(c) of section 36(1) of IT Act as contextually interpreted and explained in the Board Circular No 258 dated 14-6-1979), the assessee should be taken to have complied With the requirement of making the said provision for c1aiming deduction under clause (viia)(c) of section 36(1). Prior period expenses disallowed - Held that:- Assessee did not produce any evidence to demonstrate that these expenses crystallized during the year under consideration. The assessee is following mercantile system of accounting and in mercantile system of accounting the expenses relate to that year though not incurred has to be provided on estimate basis provided the incurring of such expenses is not contingent. The Ld AR did not submit any argument or evidence to prove that these expenses were contingent.
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