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2021 (6) TMI 526 - AT - Income TaxDisallowance of prior period expenditure - Expenditure ought to have been claimed in the relevant previous year in which the same was incurred - HELD THAT:- It is an admitted fact that the Assessing Officer’s as well as the CIT(A)’s detailed discussions have been fair enough in not disputing this clinching crystalisation aspect. Coupled with this, the assessee has been assessed at the same rate all along. The hon’ble Gujarat high court’s decision in PCIT Vs. Adani Enterprises Ltd. [2016 (7) TMI 1250 - GUJARAT HIGH COURT] holds that the impugned prior period expenditure disallowance in such a case ought not to be made as it is a revenue neutral instance only. We adopt the same reasoning herein as well and direct the Assessing Officer to delete the impugned disallowance. The assessee’s former substantive ground is accepted therefore. Employees’ provident fund disallowance u/s 36(1)(va) - HELD THAT:- The assessee’s only case as per its computation is that it had suo motu disallowed the very expenditure in the corresponding computation which renders it as an instance of double addition of the claim.. We direct the Assessing Officer to delete the same therefore.
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