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2024 (2) TMI 981 - AT - Income TaxAddition on account of provision made on performance guarantee/warranty - AO concluded that the assessee was using provision for contingent liability as a tool to reduce taxable income and thereby evading the payment of tax, provision for performance guarantee / warranty was disallowed - CIT(A) deleted the addition - HELD THAT:- As decided in assessee’s own case for A.Y. 2011-12 [2022 (7) TMI 548 - ITAT RAJKOT] provisions made in one year was reversed in the next year by offering the same as income. Therefore, it is not the case of the assessee that it has been claiming deduction on account of the provisions made against the sales of each year consistently without giving effect of the opening balance of the provision for the guarantee/warranty - No infirmity in the claim made by the assessee in its books of accounts for the provisions against the sales made in the year under consideration. Thus we reverse the order of the authorities below and direct the AO to delete the addition made by him. - Decided in favour of assessee. Disallowance u/s 14A r.w.r. 8D - CIT(A) deleted the addition - HELD THAT:- looking into the assessee’s facts, wherein it is not disputed that no dividend income was earned by the assessee and the decision of Hon’ble ITAT, Rajkot Bench in assessee’s own case for A.Y. 2011-12 [2022 (7) TMI 548 - ITAT RAJKOT] we find no infirmity in the order of Ld. CIT(A) so as to call for any interference. Decided against revenue.
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