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2023 (4) TMI 78 - AT - Income TaxUnderstatement of income - undisclosed lease rental income - Addition of prior period expenses - HELD THAT:- As we find that the ld. CIT(A) has not called for remand report upon various detailed submissions of the assessee, before deciding the issues, appears to be in violation of Rule 46A of the Income Tax Rules, 1962. Accordingly, we set aside the order of the CIT(A) on the above issues and remit the matter back to the file of the Assessing officer for fresh adjudication after detailed verification of claims of the assessee in accordance with law by affording sufficient opportunities of being heard to the assessee. Disallowance of guarantee commission - AO has noticed from the schedules annexed to the Profit and Loss account that the assessee-company has claimed guarantee commission to State under the Head "INEREST AND FINANCE CHARGES" - HELD THAT:- Admittedly, the assessee has proposed for payment of outstanding guarantee commission in 15 equal monthly instalments. Assessee has not produced any evidences towards approval of the Government for the above proposal of the assessee or payment of guarantee commission as proposed by the assessee - in case the assessee has incurred expenses towards payment of guarantee commission as proposed pertaining to the relevant assessment years, the AO is required to allow the expenses. We direct the assessee to produce necessary evidences before the AO and the AO is also directed to consider and decide the issue afresh after verification of the evidences as may be filed by the assessee in accordance with law by affording an opportunity of being heard to the assessee. Disallowance of contribution to recognised provident fund - assessee has debited contributions to recognised provident fund and claimed. Since the amounts payable to statutory authorities have not been paid, the AO disallowed the same and brought to tax, which was confirmed by the ld. CIT(A) - HELD THAT:- We find that the expenses are eligible to be claimed as a revenue expenditure only on the remittance of the same to PFRDI approved CPS fund. In case, the assessee made any remittance and incurred the expenses for the relevant assessment years, the AO is directed to allow the same. Thus, the ground raised by the assessee is allowed for statistical purposes. Disallowance of over statement of expenditure - AO has disallowed the over statement of expenditures for both the assessment years, which was confirmed by the ld. CIT(A) - assessee has submitted that the overstatement of expenses were corrected through rectification journal vouchers in the ensuing financial year and alternatively it was submitted that the amount is disallowed in the assessment year 2015-16, the same may be directed to be allowed in the assessment year 2016-17 - HELD THAT:- We direct the Assessing Officer to examine and decide the issue afresh in accordance with law for both the assessment years by considering the explanations as may be submitted by the assessee. Appeals filed by the Revenue as well as assessee are allowed for statistical purposes.
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