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2023 (8) TMI 370 - ITAT MUMBAIDisallowance being advance written off in the revised return - claim not made in original ROI [Return of income] - HELD THAT:- We don’t see any force in the decision of Ld. CIT(A) in rejecting the claim of the assessee, simply because the same was not claimed in the original return and was claimed in the revised return filed in compliance to C&AG. As gone through the submissions of the assessee and found the decision of assessee well founded on facts and logics. Being, a State PSU question on the sanctity of decisions and accounting can’t be raised as the same is being owned by State Govt. and Audited by the C&AG of India. More, over even if version of Revenue is accepted for the time being, still same has to be allowed in next F.Y. and it results into a deferment only, but nothing on merits of the claim Disallowance of Leave Encashment - disallowance was made because of non-Acceptance of revised return by the Revenue - We set aside this disallowance and restore the matter back to the file of AO for fresh adjudication on the basis of evidences to be adduced by the assessee. Assessee is directed to cooperate with the AO and advance evidences of actual payment during the year in favour of his claim. In the result this ground of appeal raised by the assessee is allowed for statistical purposes. Disallowance of depreciation towards capital assets - filing revised return and non-acceptance of the same by Revenue - Assessee claimed depreciation on the basis of figures capitalised on the directions of the C & AG of India. As we already approved the filing of revise return on the given facts of the case, no disallowance can be made by the AO, if assessee claimed some allowance based on the accounts approved by the C & AG of India. In the result AO is directed to delete the addition and Ground Raised by the assessee is allowed. Disallowance made u/s. 40A (3) - wrong reporting in the Tax Audit Report and actually these amount were not claimed as an expense, same is restored back to the file of AO for re-verification by AO, based on evidences advanced by the assessee. Assessee is directed to substantiate its claim with relevant evidences that the same is not claimed as expense, hence not disallowable u/s. 40A(3). Ground of appeal raised by the assessee is allowed for statistical purposes. Addition on account of difference in Original Return and Revise Return - As submitted by the assessee that this difference arisen because of different treatment given by the C & AG of India w.r.t. revenue of the assessee - As already hold by us that revise return filed by the assessee is proper on the given facts of the case, revenue has to be considered as declared in the revise return and department cant disturb the same on the basis of original return. This ground of appeal raised by the assessee is allowed.
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