TMI Blog2015 (5) TMI 182X X X X Extracts X X X X X X X X Extracts X X X X ..... year and same is to be allowed as deduction because the assessee admittedly has been following the mercantile system of accounting. The Revenue has not placed on record any material to dispel the categorical findings of the CIT(A). - Decided against Revenue. - ITA No. 2643/Del/2012, C.O. No. 288/Del/2012 - - - Dated:- 13-3-2015 - SHRI N.K. SAINI AND SHRI GEORGE GEORGE K, JJ. For The Appellant : Smt. Parwinder Kaur, Sr. DR. For The Respondent : Sri Gaurav Jain Bhavita Kumar, Advocates ORDER PER SHRI GEORGE GEORGE K, JM: 1. This appeal, at the instance of the Revenue and the cross objection filed by the assessee arise out of CIT(A) s order dated 05.03.2012. The relevant assessment year is AY 2004-05. 2. The so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... grieved by the CIT(A) s order in granting relief on merits is in appeal before us and the assessee being aggrieved by rejecting its contention on reopening of the assessment is in cross objection before us. 7. We have heard rival submissions and perused the material on record. The CIT(A) on merits has allowed the claim of the assessee by giving the following reasoning:- I have perused the details of provision for expenses, amounting to ₹ 1,14,63,360, made by the assessee at the end of the relevant year. The same has been made for expenses, which were incurred during the year and for which liabilities were ascertained as at the end of the year. For instance, the assessee has created a provision for royalty payable to Bioss I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above, I hold that the assessee is eligible for deduction of provision for expense of ₹ 1,14,63,360 and, therefore, the disallowance made in the assessment order is deleted and the ground of appeal raised by the assessee is allowed. 8. The CIT(A) has categorically held that the expenses, which are claimed amounting to ₹ 1,14,63,360/- are accrued and ascertained liability and the same was credited to the provision account instead of vendor s account, in the absence of the final bill/invoice being received from the vendor. The CIT(A) further held that these expenses are not claimed on ad hoc basis nor it a non-existing liability. The CIT(A) was of the view these expenses have accrued in the current year and same is to be allo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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