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2020 (10) TMI 284 - AT - Income TaxPrior period expenses - allowable u/s. 37(1) - HELD THAT:- AO wrongly added especially when it has been duly accepted by department in almost all years and solely additions made during AY 2009-10 were duly struck down by CIT(A)-XVI and later on CIT(A) order was accepted by the ITAT also. Nature of these expenses clearly shows that these might pertain to earlier years but crystallized only in current AY 2006- 07. Respectfully following the ITAT order on the same issue alongwith adjudication that these aren’t expenses pertaining to earlier year’s fully allowable u/s. 37(1) addition made by AO is deleted. CIT(A) has deleted the addition by respectfully following the order of the ITAT in assessee’s own case. No contrary decision has been brought to our notice by the Ld. DR. Therefore, the issue involved in ground no. 1 is decided in favour of the assessee and against the revenue by dismissing the ground no. 1 raised by the Revenue. Bond Issue Expenses - HELD THAT:- This issue is also covered in favour of the assessee by the order of the Ld. CIT(A)-XVI, New Delhi in which Ld. CIT(A) has deleted the similar addition for assessment year 2007-08. The order is placed on record. No contrary decision has been brought to our notice by the Ld. DR. The nature of these expenses are that these are expenses incurred every year to meet the statutory requirements of issue of bonds and are Trustee Annual Fees, Rating Agencies Annual Fees, NSDL/CDSL Annual Fees, C/o stamp papers, Registrar and Transfer agents fees etc. Exactly similar expenses has been allowed by the Department in the Assessment year 2007-08. - Decided against revenue.
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