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2015 (5) TMI 182 - AT - Income TaxDisallowance of deduction of expenses - Whether the CIT(A) is justified in deleting the addition of ₹ 1,14,63,360/- made by the AO on account of provision of expenses - Held that:- CIT(A) has categorically held that the expenses, which are claimed amounting to ₹ 1,14,63,360/- are accrued and ascertained liability and the same was credited to the provision account instead of vendor’s account, in the absence of the final bill/invoice being received from the vendor. The CIT(A) further held that these expenses are not claimed on ad hoc basis nor it a non-existing liability. The CIT(A) was of the view these expenses have accrued in the current year and same is to be allowed as deduction because the assessee admittedly has been following the mercantile system of accounting. The Revenue has not placed on record any material to dispel the categorical findings of the CIT(A). - Decided against Revenue.
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