TMI Blog2014 (3) TMI 527X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the year but no such details were submitted - Assessee has not placed any material to controvert the findings of CIT(A) – there was no material has been placed to prove that the liability of interest crystallized during the year – thus, there is no reason to interfere with the order CIT(A) – Decided against Assessee. - I.T.A. No. 3417 /AHD/2010 - - - Dated:- 7-3-2014 - Shri G. C. Gupta And Shri Anil Chaturvedi, A.M.,JJ. For the Appellant : Shri P. M. Mehta For the Respondent : Shri J. P. Jhangid, Sr. D.R. ORDER Per Shri Anil Chaturvedi,A.M. 1. This appeal is filed by the Assessee against the order of CIT(A)-VI, Ahmedabad dated 12.10.2010 for A.Y. 2005-06. 2. The relevant facts as culled out from the material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts towards interest expenses of Rs. 48,40,856/-. It was further submitted that if the expenses are not considered as allowable in the current year, they must be considered in earlier years. The submissions of the Assessee was not found acceptable to the A.O. for the reason that the Assessee was following mercantile system of accounting and therefore the earlier year expenses cannot be allowed as business expenses of the year. A.O. also noticed that for allowing an expenses in earlier years, the Assessee should have claimed such expenses and furnished the proof of payment which was not done by Assessee. He accordingly disallowed the prior period expenses of Rs. 48,40,856/- and added to the income. Aggrieved by the order of A.O., the Assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that those expenses were crystallized in that year. In view of the Gujarat High court decision in the case of Saurastra Cements and in the absence of any evidence to prove that these expenses are crystallized during the year, I find no reason to interfere with the A.O.'s order. 5. Aggrieved by the order of CIT(A), the Assessee is now in appeal before us. 6. Before us, the ld. A.R. submitted that out of the total expenses on account of prior period, Rs. 48,40,855/- represents interest payable to another group concern namely Gujarat Adani Port Ltd. which was pertaining to F.Y. 03-04. He further submitted that since there was delay in finalizing the rate and amount of interest payable by the Assessee and the final decision came to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther hand submitted that Assessee follows mercantile system of accounting and even as per the accounting policies of the Assessee as stated in its accounts, all expenditure and income to the extent considered payable and receivable were accounted for on accrual basis except those with significant uncertainty. He therefore submitted that the interest expense was certain and therefore it has to be accounted on accrual basis and since it did not pertain to the year under appeal, the same is not allowable. He further submitted that the decision of the Hon'ble Tribunal in earlier years was not on merits and therefore it cannot be said that the facts of the case in the year under appeal are identical to that of earlier years. He further submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rior period expenses and to prove as to how those expenses crystallized during the year but no such details were submitted by the Assessee either before A.O. or CIT(A). CIT(A) has further given a finding that in earlier years, the Assessee had submitted details and proved that the expenses crystallized during the year but no such details were submitted before him and therefore the decision of earlier years was not relevant. Before us, Assessee has not placed any material to controvert the findings of CIT(A). We further find that the decisions relied upon by the Assessee are distinguishable on facts and therefore cannot be applied to the facts of the present case. Before us also no material has been placed to prove that the liability of inte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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