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2022 (4) TMI 222 - AT - Income TaxAddition of FSA charges on the ground that the same relates to prior period item - HELD THAT:- As pursuant to the bills issued in the financial year 2012-13 and referred to in the demand were payable in instalments and to that extent, the liability is crystallized. The expenditure is genuine. However, how many instalments were paid and to what extend the assessee is entitled to claim as expenditure is a fact to be verified at the end of the AO. Suffice it to say that insofar as such payments were considered, the liability was crystallized only during the financial year 2012-13 pursuant to which the payments were made by the assessee and claimed as expenditure during the A.Y. 2013-14. With this view of the matter, we are of the considered opinion that inasmuch as the bills were issued in the financial year 2012-13 and as a result of litigation, the APSPDCL raised the demand on 7.11.2015 for payments of dues up to 06.08.2016 in instalments and the assessee paid such instalments, they are entitled to claim such payments in the A.Y. 2013-14. Observing thus, we restore the issue to the file of the learned Assessing Officer for verification of the amounts paid during the financial year 2012-13 and to grant relief. Grounds 2 & 3 of this appeal are accordingly allowed for statistical purposes. Additions u/s. 2(24)(x) r.w.s. 36(1)(va) - HELD THAT:- Considering the hardships pleaded by the assessee and also in view of the fact that no rights are crystallized in the parties by such lapse of the assessee, we are of the opinion that the technicalities should not be allowed to overrun the delivery of substantial justice and this case deserves a lenient view. We accordingly set aside ground No. 4 of this appeal to the file of the learned CIT(A) for adjudication on merits. Ground No. 4 accordingly allowed for statistical purposes.
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