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2019 (4) TMI 1155 - ITAT BANGALOREReopening of assessment - deduction u/s. 43B disallowed - HELD THAT:- As per tax audit report, it was stated that this claim is u/s. 43B and this is accepted factual position that no payment was made in the present year and therefore, deduction u/s. 43B is not allowable in the present year u/s. 43B. As per the relevant portion of tax audit report it is seen that it has been shown that property registration fees was paid out of opening balance of ₹ 96 Lakhs which has been paid during the present year and regarding date of remittance, it is said that Note no. 3 is relevant and note no. 3 says that paid / adjusted during the year and when this is admitted position of fact that payment was not made in the present year and there is no evidence to claim in the tax audit report, in our considered opinion, the reopening is valid because at the stage of reopening, only a prima facie case has to be made out by the AO that some income has escaped assessment and the AO has done so in the present case. In this view of the matter, we uphold the reopening. Ground no. 2 is rejected. Merit of the disallowance u/s 43B - HELD THAT:- The claim of the assessee is this that in earlier year, certain provisions was made and the same was disallowed in the respective year u/s. 43B and in the present year, such provision is reversed by debit to provision account and credit to rent account. This is the claim of the assessee that such credit to rent account in the present year by way of reversal of the earlier provision having been already disallowed in the respective year, cannot be taxed in the present year. If the facts stated by assessee are correct then the claim of assessee is acceptable. But since this factual aspect has never been examined by AO or CIT (A), we feel it proper to restore the matter back to the file of AO for factual verification of this aspect of the matter. Ground no. 3 is allowed for statistical purposes.
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