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2019 (10) TMI 654 - ITAT CHENNAIAccrual of income - Taxability of amount receivable towards drawback and amount of tax claimed as refund - whether refund as accrued to assessee or not - HELD THAT:- When the amount is paid, it is debited to advance account and when it is recovered from the customers, the advance amount is credited. Similarly, is the case in the case of works contracts and excise duty paid and sales tax. As regards to the duty drawback, it is submitted that the same is offered to tax as and when it is received, in the light of the decision of the CIT vs. Excel Industries Ltd. [2013 (10) TMI 324 - SUPREME COURT]. The explanation offered by the assessee had not been controverted by the lower authorities but merely rejected the same without giving valid reasons. On the face of the explanation in respect of Item Nos.1 to 4, no addition is warranted. The disputed tax liability paid under protest does not constitute the income in the hands of the assessee. However, the AO had not gone into the issue in detail by undertaking the due process of verification with the evidence. Similarly, as regards to the duty drawback AO had not undertaken the exercise of verifying whether the due drawback had accrued to the assessee or not. Therefore, we are of the considered opinion that the issue may be restored to the file of the AO for de novo assessment on this issue. MAT - addition of provision for disputed claims to the book profit for the purpose of computing tax liability u/s.115JB - HELD THAT:- From the details on record the provision includes that the disputed tax liability and the provision made for disputed claims for ₹ 9.50 crs. and the provision of doubtful debts of ₹ 3.25 Crs. etc., undoubtedly these provisions cannot be considered as a provision for unascertained liabilities. However, from the perusal of the Assessment Order it is clear that the AO had not looked into the details and the nature of the provision made and simply added back to the book profit. Therefore, these issues are restored to the file of the AO for the purpose of due verification of the nature of the provision and decide the issue in accordance with the law. Appeal filed by the assessee is partly allowed for statistical purposes.
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