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2017 (10) TMI 829 - AT - Income TaxAddition on account of Business Loss - higher amount has been spent on the project as against the total cost of expenditure - Held that: - The assessee failed to prove that liability/loss has been crystalized during assessment year under appeal and what is the basis thereof for making the claim of loss. It is very well clear under the Income Tax Act, deduction is not admissible on the basis of the mere provision or on the basis of event which has not crystalized on the date of its claim. There is no indication of loss in facts of case, so AS-7 will not apply. It is simply a case of delayed payment received from Delhi Government and Societies. There is also no denial by the Delhi Government as well as Societies for the claim of excess payment/ loss by the assessee which is also paid in subsequent year as per contention of the assessee. Therefore, disallowance of provision of loss was justified. Appeal dismissed - decided against assessee.
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