Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (6) TMI 767 - AT - Income TaxAllowability of Prior period expenses when Mercantile method of accounting was being followed by the assessee - AR submitted that the quantum of amount payable to workers on account of wages/ salaries / PF etc. and sums payable to other authorities was not a liability of the assessee till it was determined by Hon’ble Supreme Court - HELD THAT:- The Bench is of considered opinion that when the amounts otherwise denied by an assessee have become payable under the orders of Court, though they may relate to any previous year or past activity, they have to be considered to have accrued in compliance of the orders of the Court. Ld. CIT(A) has duly taken note of same in para no. 5.2.23, the same require no interference. Ground no 1 has no substance. Loan amount sanctioned by the Government for the purpose of business - As observed that in an attempt to revitalized the Super Bazar which was run by the assessee, the funds were introduced on various occasions by the Central Government in the form of unsecured loans. The matter on record show that the official liquidator has taken into consideration the same as made apparent by documents available and at the end of relevant year what stood as balance was written off at the instance of Government as being waived off. CIT(A) has taken notice judgment of Hon’ble Bombay High Court in Mahindra and Mahindra [2003 (1) TMI 71 - BOMBAY HIGH COURT] which has been later on confirmed by Hon’ble Supreme Court [2018 (5) TMI 358 - SUPREME COURT] and given relief to the assessee. The same requires no interference. The ground raised by the department has no substance. Consequently the appeal of Revenue is dismissed.
|