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2015 (12) TMI 343 - ITAT AHMEDABAD

2015 (12) TMI 343 - ITAT AHMEDABAD - TMI - Addition on account of income not shown in the P&L account - AO made disallowance on the basis that the expenditure could not be verified from the Gujarat Electricity Board [GEB] - CIT(A) delted the addition - Held that:- There is no dispute with regard to the fact that GEB has confirmed the recovery of the expenses. However, the AO did not allow the expenses on the ground that GEB failed to correlate the expenses with the year under appeal. We do not f .....

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essee has submitted that recovery is in respect of the payments made by the GEB on behalf of the assessee. The AO has not brought any material on record suggesting that the recovery were not related to the contract payments. Under these facts, we are of the considered view that the ld.CIT(A) was justified in granting the deduction. - Decided against revenue. - I.T.A. No.2289/Ahd/2011, C.O. No.213/Ahd/2011 - Dated:- 15-10-2015 - SHRI G.D. AGARWAL,VICE PRESIDENT (AZ) And SHRI KUL BHARAT, JUDIC .....

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nvenience. 2. First, we take up the appeal filed by the Revenue, i.e. ITA No.2289/Ahd/2011. The Revenue has raised the following grounds of appeal:- [1] On the facts and circumstances of the case and in law, the Ld.CIT(A)-I, Surat has erred in deleting the addition of ₹ 20,19,488/- on account of income not shown in the P&L account with appreciating the fact that assessee failed to discharge the onus lies upon him for not offering the receipt of ₹ 20,19,488/- in P&L account. [ .....

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mp at Surat) in earlier round of litigation in ITA No.604/Ahd/2006 for AY 1993-94 vide its order dated 17/09/2009 was pleased to restore the matter to the file of Assessing Officer (AO) with a direction to give deduction of ₹ 20,19,490/- claimed in lieu of expenses incurred by Gujarat Electricity Board (GEB) on behalf of the assessee (after verifying the books of account of the assessee). The AO in the second round, yet again, confirmed the disallowance vide order dated 27/12/2010 on the b .....

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ure, the AO was justified in disallowing the same. He placed reliance on the order of the AO. 3.1. On the contrary, ld.counsel for the assessee Shri R.N.Vepari supported the order of the ld.CIT(A) and submitted that the direction of the Hon ble Tribunal, in earlier litigation, in ITA No.604/Ahd/2006 was clear, the AO ought to have granted the deduction. 4. We have heard the rival submissions, perused the material available on record and gone through the orders of the authorities below. The AO ma .....

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.counsel for the assessee that the subject disallowance is not sustainable as the direction of the Tribunal in the earlier round of litigation was clear that the AO would verify from the books of account of the assessee about the expenditure. There is no dispute with regard to the fact that the GEB had made recovery out of the contract payment. Therefore, there is no doubt about the fact that the recovery relates to the business of the assessee. The assessee has submitted that recovery is in res .....

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