9911796707
TMI Blog2014 (3) TMI 401X X X X Extracts X X X X X X X X Extracts X X X X ..... s relating to the above said issues are stated in brief: The assessment in the hands of the assessee for the year under consideration was originally completed u/s 143(3) of the Act on 28.12.2006 on a total income of Rs.3.13 crores. Subsequently, the AO noticed that the income has escaped assessment within the meaning of Explanation 2 (c) of section 147 as there was incorrect set off of carry forward of losses and incorrect computation of business income on account of allowance of expenditure claimed under the head "Miscellaneous Provisions" of Rs.30 lacs. Accordingly, the AO reopened the assessment by issuing notice u/s 148 on 25th March, 2009. The AO completed the reopened assessment on 25th Dec 2009 by making various disallowances. The as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted that the mutual funds spend these expenses and then claim the same from the assessee. He submitted that the assessee did not receive the details of such claims by 31.3.2004, i.e., by the year end, from the mutual funds and hence, in terms of requirement of accounting standards, the assessee provided for a sum of Rs.30.00 lakhs under the head "Miscellaneous Provisions" to take care of those expenditure claims. He further submitted that the AO was not right in terming this expenditure as "anticipated expenditure", since it was a known liability and further it related to the year under consideration. The Ld AR further submitted that the assessee has paid a sum of Rs. 22,81,707/- in the succeeding year and debited the same against the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said claims relate to the year under consideration and further it was its liability. When a specific query was put to Ld A.R as to whether there is any basis for arriving at the figure of Rs.30.00 lakhs, the Ld A.R replied that the assessee is having the basis. However, he submitted that the assessee has disbursed a sum of Rs.22,81,707/- in the immediately succeeding year out of the provision of Rs.30.00 lakhs made in the instant year. 8. When the Ld A.R was asked about the date of disbursement of the amount of Rs.22,81,707/-, the Ld A.R invited our attention to the copy of voucher placed at page 65 of the paper book and submitted that the disbursement was made on 29.09.2004. He further submitted that the audited financial statements were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mediately succeeding year and the view expressed by the bench would result in addition of the same amount during the year consideration also, in which case the amount of Rs.7,18,293/- would be taxed twice, i.e., during the year under consideration and also in the succeeding year. Accordingly, he submitted that the assessing officer may be given suitable direction to delete the amount of Rs.7,18,293/- offered by the assessee in the succeeding year, since the said amount is getting taxed in the instant year. 10. When these facts and discussions were put forth to Ld D.R, he fairly submitted that he does not have any objection in restricting the claim to Rs.22,81,707/-. With regard to the plea of the assessee with regard to the balance amount ..... X X X X Extracts X X X X X X X X Extracts X X X X
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