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2014 (4) TMI 286 - AT - Income TaxPrior period expenses – Held that:- The assessee has not produced evidence either before the AO or before the CIT(A), to substantiate its claim that the expenses had crystallized during the year - the order of the FAA is upheld – Decided against Assessee. Application of section 41(1) of the Act – Held that:- The decision in CIT vs. Shivali Constructions P.Ltd. [2013 (6) TMI 130 - DELHI HIGH COURT] followed - The very first condition for invoking section 41(1) is that an allowance or deduction ought to have been made in the assessment for any year in respect of any loss, expenditure or trading liability incurred by the assessee - it is an admitted position that no allowance or deduction had been made in the assessment of the assessee in any earlier year –thus, there is no question of invoking section 41(1) of the act - CIT(A) were correct in deleting the addition made by the AO – The Assessee is entitled to make a fresh claim before the CIT(A), when no investigation into the facts is required - the FAA admitted the ground and disposed of the same on merits - The Department has not filed an appeal challenging this action of the CIT (A) - decided in favour of Assessee.
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