TMI Blog2013 (5) TMI 641X X X X Extracts X X X X X X X X Extracts X X X X ..... de by the AO. As DR could not point out any distinguishable features or mistake in the order of the CIT(A)ground raised by the revenue is accordingly dismissed. In favour of assessee. - ITA No.:9154/Mum/2010 - - - Dated:- 22-5-2013 - Shri R. S. Syal And Shri Sanjay Garg,JJ. For the Appellant : Ms. Girija Dayal For the Respondent : Mr. Devdatta S. Mainkar Mr. Chaitanya D. Joshi ORDER Per Sanjay Garg, JM : The present appeal has been filed by the revenue against the order of the learned CIT(A) dated 11.10.2010 relevant to A.Y. 2004-05. The only effective ground raised by the revenue read as under: "On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in deleting the disallowance of los ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ines and no provisions are allowed under the I.T.Act. In view of the above discussion, the loss of Rs.11,41,98,610.38 debited to Profit and Loss A/c. is clearly only a provision as per the RBI guidelines also and the same should be added back by the assessee to the total income." 2.1 The learned CIT(A) allowed the appeal of the assessee setting aside the disallowance made by the AO in this respect, observing as under: "10. I have considered the submissions of the A.R. and I find that this issue has been considered by my predecessor who has allowed the claim of the appellant in following words: "The ld. A.O. has misunderstood the word 'provision for outstanding repo' and treated it as contingent liability. The appellant company has to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ough in the books of account the word 'provision' was used. This ground of appeal is allowed." The revenue is thus in appeal before us. 3. We have heard the learned representatives of the parties and have also gone through the record. The learned AR has relied upon certain guidelines issued by the Reserve Bank of India under the head "Guidelines for Uniform Accounting of Repo / Reverse Repo transactions vide Circular bearing No. IDMC.3810/11.08.10/2002-03 dated March 24, 2003, to stress the point that the assessee has rightly debited the anticipated loss making provision for outstanding repo transactions. Clause 'n' to Annexure 1 of the Circular is relevant which for the sake of convenience is reproduced as under: "Recommended Account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g and reverse repo transactions dated 20.3.2004 copy of which is placed at pages 29 to 39 of the paper book. After going through the guidelines issued by the RBI for uniform accounting repo/reverse repo transaction, we find the assessee company has followed the guidelines issued by the RBI and accordingly debited the amount of Rs.109.69 lacs under the head provision for outstanding repo transaction. We find, the CIT(A) has correctly appreciated the facts of the case in the light of the guidelines issued by the RBI and has deleted the disallowance made by the Assessing Officer. The ld DR could not point out any distinguishable features or mistake in the order of the CIT(A). Since the order of the ld CIT(A) is in conformity with the guideline ..... X X X X Extracts X X X X X X X X Extracts X X X X
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