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2018 (11) TMI 1414 - AT - Income TaxDisallowance of provision for wages - allowable deduction u/s 36 - as per AO only actual amount paid towards agreement arrear is an allowable deduction and no any provision to meet such future liability, accordingly, the Assessing Officer disallowed the claim - Held that:- The assessee has duly explained that the last wage revision was done for the period 01/01/2009 to 31/12/2013 and thereafter the wages revision was due from 01/01/2014 till 31/3/2015, thus the assessee had made provisions of revised wages for the period from 01/01/2014 to 31/3/2014 i.e. 3 months of the financial year relevant to assessment year under consideration. The provision has been made by the assessee for three months of revised wages which finally to be approved by the government w.e.f. 01/01/2014. Once the revision of wages has to be w.e.f. 01/01/2014 and there cannot be any gap between expiry of the last revision and the new revised wages then the said liability to pay the revised wages is an actual and ascertain liability for the period 01/01/2014 to 31/3/2014 though, the quantification and crystallization of the amount comes later on when the revision is approved by the State Government. As decided in assessee's own case [2014 (8) TMI 1127 - ITAT JAIPUR] the liabilities have been created by statutory rule which assessee is bound to follow. This provision has been created for amicability with the employees and is for the commercial benefit of the assessee bank and is to be held as wholly and exclusively for the purpose of business. In this eventuality, the payment is even otherwise allowable U/s 37 of the Act. Any perceived method of calculation by the Assessing Officer cannot be held as a tool to disallow the assessee’s claim. The revenue’s interest is safeguarded by a fact that if at all there is any mistake in the calculation, the access are short calculation will be given suitable treatment in books of account in subsequent years. This being so in our considered view, the assessee is eligible for claim of PACS Manager Fund payment as expenditure. - decided in favour of assessee Disallowance u/s 14A - Held that:- CIT(A) has noted the fact that the assessee has not received any exempt income during the year under consideration. Further, the assessee has made investments in the shares of Apex bank and has not used any borrowed fund for the purpose of investment. This fact has not been disputed by the revenue before us that the investment was made from the assessee’s own interest free funds and further when no exempt income was earned or received by the assessee during the year under consideration then in view of the various decisions as referred and relied upon by the ld. CIT(A) including the decision of Hon’ble Delhi High Court in the case of Chemnivest Ltd. Vs. CIT-IV [2015 (9) TMI 238 - DELHI HIGH COURT] no disallowance is called for U/s 14A - decided in favour of assessee
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