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2021 (2) TMI 448 - AT - Income TaxDisallowance of provision written back - CIT-A directing AO to examine the records of assessee, whether whole or part of the provision written back was disallowed in any of the A.Y. 2010-11 and 2011-12 and if so, to allow the provision to the extent it was disallowed in the assessment order for the relevant previous year - HELD THAT:- Disallowances in earlier year has not been accepted by the assessee. The assessee is very much contesting the disallowances. So no impact of those disallowances can be considered in this year. The assessee in this year has written back the provisions made in earlier years as the assessee is of the view that they are no longer required. Hence, once the assessee writes back certain provisions as no longer required and takes the same into income, it cannot deduct the same from computation of income, on the ground that in the earlier year these provisions were disallowed. As the assessee is contesting the disallowances and for 1 year it has even succeeded at ITAT. In this view of the matter, the assessee is claiming double deduction during the year. Hence the order of CIT appeals to grant relief to the assessee is erroneous. The learned counsel of the assessee has fairly agreed to this. However, he has pleaded that direction may be given to the assessing officer that if the assessee loses in appeal for the matters in contest for earlier years the corresponding relief should be given to the assessee for this year. The request of the learned counsel of the assessee is not tenable. What will be the final impact of these appeals is not something which is within our domain of anticipation and any direction to consider future possibility will render the order speculative. Moreover, it is trite law that tribunal should confine itself to the matters in dispute for the assessment year under consideration and the tribunal cannot give any direction in speculation of outcome of appellate proceedings of the years not under consideration. Hence, we decline to give any direction to the assessing officer in this regard. - Decided in favour of revenue
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