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2017 (9) TMI 804 - ITAT MUMBAIRevision u/s 263 - allowability of provision for expenses - Held that:- As found from record that assessee as an accounting practice, closes its books of accounts on monthly basis and, accordingly, inter-alia provision for the above-referred expenses i.e., rent, electricity and maintenance is generally made at the end of each month. On the first day of the next month, the provision entry is reversed and actual payment is recorded. However, during the assessment proceedings, instead of the year end provision figures in respect of the above-referred expenses, inadvertently, the month end provision numbers got filed. However, vide its letter dated 13/08/2015, assessee had clarified that the provision figures that were submitted during the assessment proceedings (and which were picked by CIT in the revision proceedings) were actually month end provision figures and not the provision figures which were outstanding at the year end. It is clear that as per the revised provision figures in respect of rent, utilities and office maintenance, the total provision outstanding as at the year-end is INR 2,85,917/- and not ₹ 1,23,09,109/- taken by CIT in his order u/s.263. We accordingly modify the order of CIT and direct the AO to verify the said provision of ₹ 2,85,917/- as been claimed to be subsequently paid / adjusted in the subsequent year i.e. A.Y. 2013-14. If the AO found that a sum of ₹ 2,85,917/- had not actually paid in the next year, he may add the same to the total income of assessee. Appeal is allowed in part
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