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2022 (8) TMI 1093 - AT - Income TaxDisallowance of unpaid leave encashment provision of earlier year - HELD THAT:- We found from the fact that the assessee has already disallowed the unpaid amount before filling the return of income out of the total amount debited to the profit & loss account no separate addition can be made considering the opening balance as the same has already been considered in the earlier years and therefore, we find force in the arguments of the ld. AR of the assessee and allow the Ground No. 1 is raised by the assessee and vacate the disallowance sustained by the ld. CIT(A) for an amount. Disallowance of claim of interest paid on late deposit of TDS - HELD THAT:- Looking to the fact that interest paid by the assessee is not of tax liability of his income and the interest paid by them is compensatory in nature and therefore, the same is required to be allowed. As relying on case of Resolve Salvage & Fire India (P) Ltd. [2022 (4) TMI 906 - ITAT MUMBAI] we allow the ground no. 2 raised by the assessee and thus, we vacate the disallowance. Disallowance of prior period expenses - HELD THAT:- As per submission made in the paper book where in the assessee has given the details of the expenditure along with the reasons as to why the same is claimed in the year under consideration and the reasons being that the bill of the party received late and assessee being company without supporting documents it is the system of the assessee company not to book the claim of the expenditure. We find force in the arguments of assessee and in the absence of any adverse finding of the lower authorities the same is allowable in the year of its claim. Even there is no whisper in the order of the lower authorities about the allowability of the expenditure as the same was disallowed under the contentions that the expenditure are of prior period based on the reasoning submitted by the assessee company we vacate the disallowance and thus, the ground no. 3 raised by the assessee is allowed. Accrual of income - addition based on form 26AS - as argued assessee is a service provider in the health care sector and the assessee regularly following a particular method of accounting merely receipt shown in the form 26AS cannot be termed as income of the assessee company - HELD THAT:- As the details relating to the difference is placed before us as an additional evidence we admit that additional information and direct the jurisdictional Assessing Officer to verify the contentions of the assessee that the income from M/s E-meditek Solution Ltd. is in in fact receivable or not? If required, the Assessing Officer may call for the relevant confirmation from the payee and call for the reconciliation of income with that of the account and after giving proper opportunity of heard decide the issue in accordance with law so as to whether in fact the receipt as alleged is in fact received of the assessee company or not. Therefore, we restore the matter to the file of the Assessing Officer and with this remark, the ground no. 4 of the assessee is allowed for statistical purposes. Addition of writing bad debts - HELD THAT:- Assessee drawn our attention to the ledger account wherein amount written off by the assessee is duly reflected and ld. AR of the assessee respectfully submitted that these are being the small amount receivable of various assessee, the same is not reflected in the ledger account but it is duly recorded in the audited accounts and supporting vouchers as referred in the ledger account already placed on record. In the accounts the respective vouchers definitely shows the name of the parties whose amount is written off and therefore, assessee has submitted that if given a chance he is ready to give details to the jurisdictional Assessing Officer and can demonstrate the name and figure of each patient amount written off. Therefore, in the interest of justice, we deem it feet that to set aside this issue before the ld. Jurisdictional assessing officer with a direction that this issue may be decided on merits after giving the assessee a proper opportunity of being heard in the matter. Thus, this ground no 6 of the appeal is also allowed for statistical purposes. Completing the assessment without considering the revised return of income filed in time by the assessee company - HELD THAT:- CIT(A) has recorded his finding that the apex court in the case of Goetze India Limited [2006 (3) TMI 75 - SUPREME COURT] that the ITAT can consider such claim of the assessee made by the assessee in revised return of income. He further noted that the apex court did not consider this liberty to the CIT(A) and thus he has confirmed the view of the assessee. Since, there is no other adverse observation about the valid revised return of income filed by the assessee and considering the decision of the apex court as referred herein above, we direct the ld. AO to consider the revised return of income filed by the assessee and assessee’s income be computed accordingly. In terms of this observations the ground no. 1 raised by the assessee is allowed. Ad-hoc disallowance of expenses - expenditure debited under the heads staff welfare expense and conveyance expenses with reference to ledger account - HELD THAT:- We respectfully following the Co-ordinate Bench decision in the case of M/s D.C. Construction [2019 (5) TMI 1941 - ITAT RAIPUR] where in the co-ordinate bench held that the AO has made a lump sum disallowance without pointing out any concrete evidence against the assessee and lump sum disallowances made by the AO was deleted. As the Assessing Officer and ld. CIT(A) could not find any defect on various claims made by the assessee, ad-hoc disallowance without pointing out any specific defect not sustainable. Being consistent with the above decision of the co-ordinate bench, we hold that the in absence of any specific defect no ad hoc disallowance can be made and thus the ground no. 4 raised by the assessee is allowed.
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