9911796707
TMI Blog2014 (2) TMI 1163X X X X Extracts X X X X X X X X Extracts X X X X ..... CE WHEELS LDT., Mumbai (hereinafter referred to as Appellant) hereby submits the following grounds of appeal for your kind and sympathetic consideration. 1. Disallowance of Liabilities-(Rs.1,60,22,503/-) On the facts and in the circumstances of the case and in law, the Learned CIT(A) erred in disallowing a sum of Rs. 1,60,22,503/- claimed by the Appellant representing year end provisions of various expenses made in the books of accounts as at 31st March, 2006. The learned CIT has not accepted the contention of the Appellant with regard to the provisions and disallowed the same as unascertained liability. 2. Expenses disallowed u/s.37(1)-(Rs.11,85,893/-) On the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owed and added the same in assessee's income. The AO also observed that there was abnormal increase in expenditure on account of staff welfare, conveyance and travelling expenses in the month of March, 2006. He disallowed on ad-hoc basis 50% of such expenditure. By the impugned order the CIT(A) confirmed both the additions and, therefore, the assessee is in further appeal before us. 4. We have considered rival contentions and carefully gone through the orders of the authorities below and found from the record that in addition to the regular expenditure the assessee has claimed following expenditures under the head "provisions for expenses" :- Sl.No. Particulars Amount 1. Advertisement Expenses 6,15,093 2. Commission & Brokerage 77 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to follow mercantile system of accounting, only the expenditure accrued and pertaining to the year under consideration can be allowed. As per the contention of the learned AR these expenditures were pertaining to the year under consideration but alleged to be paid in the subsequent year, however, this fact was not verified by the lower authorities so as to find out actual incurring and crystallization of expenditure. In the interest of justice and fair play, we restore this issue to the file of the AO with a direction to the assessee to produce the relevant bills and vouchers before the AO along with payment details of such expenditure dully supported by the confirmation of parties. If such expenditure are subject to provisions of Section 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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