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2015 (4) TMI 152 - AT - Income TaxRevision u/s 263 - AO has allowed deduction of ₹ 809.86 lakhs under the head “salaries, wages and allowances” for “provision” made pending finalisation of Pay Revision of employees which had become due from 01.01.1997 and this liability which accrues on account of pay revision, is neither ascertainable nor had been approved during the P.Y. relevant to the A.Y. 1999-2000 - Held that:- Applying the propositions laid down in the binding judgement of CIT vs. DLF Ltd. (2012 (9) TMI 626 - DELHI HIGH COURT) considered the judgement of Malabar Industrial Co. [2000 (2) TMI 10 - SUPREME Court] there is no element of unsustainability in the order of the AO, as far as the allowing of the deduction of the provision made in salaries for impending pay revision is concerned. Thus the invocation of jurisdiction u/s 263 of the Act by the Ld.CIT is bad in law. - Decided in favour of assessee.
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