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2022 (3) TMI 888 - AT - Income TaxExemption u/s 11 - estimated disallowance @ 10% of the expenses under section 13(1)(c) read with section 13(3) on the ground that the estimated amount of disallowance pertained to utilization of income for the benefit of specified persons referred to in Section 13(3) - CIT(A) deleted these disallowances, holding that there was no evidence of any bogus bill or voucher, and that there was no finding that bills and vouchers were not verifiable - HELD THAT:- It is not in dispute, that the Assessee failed to furnish full information to the AO, during assessment proceedings, in respect of application or use of income or property for use of specified persons referred to in section 13(3) of IT Act - assessee had failed to make full compliance with the requirements made by the AO, to produce the books of accounts, relevant supporting documents and other information/documents as prescribed by the AO during assessment proceedings; though the assessee did, without dispute on this fact, produce books of accounts before the AO on sample basis - there is no dispute, that the assessee did not claim during assessment proceedings that prior period expenses crystallized during the current period relevant to Assessment Year 2010-11; and, that the AO did not get any opportunity to examine the assessee's claim - CIT(A) did not provide any opportunity to the AO, to rebut this claim made by the assessee for the first time during appellate proceedings before Ld. CIT(A) - CIT(A) has not passed a speaking order on how he came to the conclusion, that the aforesaid prior period expenses had crystallized during the year relevant to Assessment Year 2010-11. Assessee faced genuine difficulties in fully complying with all the requirements prescribed by the AO during assessment proceedings. Regarding the claim of the assessee (in Assessment Year 2010-11) that prior period expenses crystallized during the period relevant to Assessment Year 2010-11; we find that this claim was not scrutinized properly either during assessment proceedings (because this claim was not made by the assessee during assessment proceedings) before the AO, or during appellate proceedings before the Ld. CIT(A). We set aside the impugned appellate orders of the Ld. CIT(A), and restore all issues in dispute in the present appeals before us, to the file of the Assessing Officer, for fresh order in accordance with law- Appeal allowed for statistical purposes.
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