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2018 (11) TMI 1868 - AT - Income TaxLiability crystallized and quantified during the previous year - Additions on account of Prior period expenses, ERPC Charges and Integrated income on SLDC UI Fund WBSETCL - whether AO was not justified in making the disallowance as whatever expenses claimed by the appellant are already disallowed by the A.O. separately? - HELD THAT:- Prior period expenses - liability of expenses has been crystallized during the previous year, relevant to the assessment year under consideration. As per mercantile basis of accounting, the liability is recorded when obligation to pay arises. In the assessee`s case the liability to pay arises in the assessment year under consideration therefore, assessee has rightly claimed the expenses - we decline to interfere in the order passed by the ld CIT(A), his order on this issue is hereby upheld and the grounds of appeal raised by the Revenue, on this issue is dismissed. ERPC Charges - These payments would not attract any of the provisions relating to the requirement for making TDS while making the impugned payments, as these were statutory contributions made to a Government Body, and not contractual payments and hence these payments would not attract any of the provisions relating to the requirement for making TDS. That being so, we decline to interfere with the order of Id. C.I T.(A) deleting the aforesaid additions. His order on this addition is, therefore, upheld and the grounds of appeal of the Revenue is dismissed. Accrual of Income - Interest income on SLDC-UI Fund-WBSFTCL - We note that on the identical issue, the Division Bench in assessee`s own case,. [2014 (10) TMI 942 - ITA T KOLKATA]deleted the addition. As the issue is squarely covered in favour of the assessee and there is no change in the facts and law and the Ld. CIT(A) has allowed the appeal of the assessee by relying the judgment of the Division Bench - Appeal filed by the Revenue is dismissed.
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