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2016 (3) TMI 1465 - AT - Income TaxAddition of prior period expenses - In the absence of any supporting evidence/documents, the expenses AO made the addition - CIT(A) deleted the addition - HELD THAT:- The assessee is a public sector undertaking and it has got a vast organization. In its system of account when expenditures are not reported or identified upto the close of the year are subsequently accounted for under prior period expenses. This system of accounting has been regularly followed and the Department has not disputed about this in the past. We also agree with the contention that the AO has clearly erred in drawing adverse inference that these expenditures were not covered by actuarial valuation. AO's plea that supporting evidences have not been produced is also not cogent as rightly contended by the ld. counsel for the assessee, the particulars supporting against expenditures are duly attached with the concerned vouchers. It is not the case of the Assessing Officer that any voucher of the assessee company has been found to be lacking credibility. We also note that ITAT, Ranchi Bench, in assessee’s own case [2013 (5) TMI 858 - ITAT RANCHI] had upheld the assessee’s claim of prior period expenditure for assessment year 2007-08. Decided in favour of assessee.
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