9911796707
TMI Blog2012 (12) TMI 632X X X X Extracts X X X X X X X X Extracts X X X X ..... respect to interest on electricity duties, water charges and electricity duty for the Assessment Year 2006-07 whereas for the Assessment Year 2007-08, the learned CIT assuming jurisdiction u/s.263 apart from interest on electricity duty and water charges has also considered the issue with respect to amounts charged to accounts pending finalization of the payment of salary/wages. 3. We propose to take up both the appeals together insofar as the learned Counsel for the assessee has stated that for the Assessment Year 2006-07 the issues were dealt with by the Assessing Officer and were adjudicated by the learned CIT(A) on an appeal filed by the assessee therefore stands settled for the purported error sought to brought on record by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered by the Assessing Officer in his order insofar as the electricity duty was to be deposited in a bank account on the direction of the Hon'ble Orissa High Court. A particular amount to be disallowed was already returned disallowed u/s.43B in the light of the Tribunal order in assessee's own case on this issue. The learned CIT assuming jurisdiction uls.263 tried to arithmetically probe the actual amount to be disallowed uls.43B was lower than what has been claimed disallowable by the assessee. No useful purpose would be served as per the direction of the learned CIT to the Assessing Officer insofar as the Assessing Officer would not be able to act upon it insofar as the issue was before the learned CIT(A) who has already adjudicated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e issue is subjudice, neither the assessee nor the Department may sit on the judgment to award interest. Therefore, interest being a period payment for the impugned year, has been provided for in the impugned Assessment Year cannot be subjected to disallowance for claiming deduction u/s.37. The Assessing Officer after having applied his mind allowed the claim in the impugned Assessment Year on both these issues therefore cannot be thrust upon by t he learned CIT holding a view other than the view which was legitimately accepted by the Assessing Officer but on the basis of arithmetical finding of the learned CIT which rather leans in favour of the assessee. 6.2. With respect to the additional issue raised by the assessee in Assessment Year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the learned CIT when he proposed to annul the whole of the orders of the Assessing Officer particularly for these three basic issues would be unjust, unfair and highly impracticable. 7. The learned CIT-DR submitted that the provisions are not allowable uls.43B insofar as with respect to the salary and wages, the assessee was yet to determine the quantum was purely a contingent liability provided for not allowable was found by the learned CIT. The earning of interest on the deposits made in the bank was a matter which the learned Counsel for the assessee has not clarified whether could be claimed as deduction by providing for it on the basis of order of the Hon'ble High Court to be awarded subsequently. The deposits of amount in a bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as erroneous or prejudicial to the interest of revenue by the learned CIT. Provision for the pay revision is provided on the basis of labourers executing the work and labour Union in the Industrial Sectors. The enhanced pay bill which will be assigned to them later can be provided for by the assessee in view of it not being contingent but accrued on the basis of services rendered by the recipients. The change or credit arisen out of a contingency which at the time of occurrence could not be estimated correctly shall not construe the correction or error and change of asset and as such, such item shall not be treated as disallowable u/s.37. The Revenue cannot take both the stands for declining to allow the prior period expenses in the impugn ..... X X X X Extracts X X X X X X X X Extracts X X X X
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