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2021 (7) TMI 1181 - ITAT AHMEDABADNature of expenditure - Disallowance of claim of guarantee fees paid to Government of Gujarat - disallowance as revenue expenditure as it is of enduring nature in the assessee's business and hence capital in nature - HELD THAT:- The issue has already been subjected to judicial consideration in The DCIT vs. Gujarat Energy Transmission Corporation Ltd. [2019 (9) TMI 376 - ITAT AHMEDABAD] concerning A.Y. 2009-10 and thus is no longer res integra. In parity with the view expressed by the co-ordinate bench, we do not see any error in the conclusion drawn by the CIT(A) in favour of the assessee. Disallowance of prior period expenses - disallowance made on the ground that the expenses under various heads as noted in the assessment order pertained to earlier years and the assessee which is following system of accounting ought to have made provision for expenses in those respective years for eligibility of claim - HELD THAT:- As submitted that the majority of expenditure out of prior period expenses on account of excess provision written back. The explanation appears obscure in the absence of proper details. We simultaneously note that assessee is a State Government Undertaking and its accounts are subjected to review by CAG and therefore it cannot be postulated that there was any deliberateness in not furnishing relevant details before the revenue authorities. The bona fides of the Assessee is also augmented by the facts that the Assessee has reported staggering carry forward losses in its returned income. Thus, there is no immediate tax advantage accrued to the assessee by the claim of impugned prior period expenses per se. We therefore deem it expedient to restore the issue back to the file of A.O. for examining the issue de novo after verifying facts as may be considered necessary and expedient in accordance with law. See ADANI ENTERPRISES LTD. [2016 (7) TMI 1564 - GUJARAT HIGH COURT] - The issue raised in its ground of appeal is thus set aside to the file of A.O. in terms of directions noted above. As a result, the ground of assessee's appeal is allowed for statistical purposes.
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