TMI Blog2016 (5) TMI 397X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of arrears for salary payment was made in the accounts on accrual basis, the disallowance made by the Assessing Officer was not held to be justified. The findings recorded by the Tribunal are pure findings of fact which have not been shown to be illegal or perverse by the learned counsel for the appellant-revenue. - Decided against revenue - ITA No. 53 of 2016 (O&M) - - - Dated:- 26-4-2016 - MR. AJAY KUMAR MITTAL AND MRS. RAJ RAHUL GARG, JJ. For The Appellant : Mr. Yogesh Putney, Advocate Ajay Kumar Mittal,J. 1. This appeal has been preferred by the revenue under section 260A of the Income Tax Act, 1961 (in short, the Act ) against the order dated 10.9.2015, Annexure A.3 passed by the Income Tax Appellate Tribunal, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provision for which was made during 2008-09. The remaining provision for 60% arrears of the revised pay scales amounting to Rs. 204.52 lacs was made during the year 2009-10. Vide order sheet entry dated 29.1.2013, the assessee was asked to explain why these provisions created during the year may not be disallowed as these expenses were eligible in the year of payment. The assessee in its reply dated 30.1.2013 stated that its Board of Directors held a meeting on 18.3.2009 wherein a resolution was passed to pay arrears of pay scales at the rate of 60% of the total arrears during the year under consideration as per which a provision was made for Rs. 2,04,52,413/- on accrual basis as the accounts of the assessee were maintained on mercantile ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the disallowance made by the Assessing Officer was not held to be justified. While concurring with the findings recorded by the CIT(A), it was recorded by the Tribunal as under:- 9. We have heard the rival contentions and perused the material available on record. We are in total agreement with the findings given by the learned CIT(Appeals). The provision of the pay revision was made by the assessee as per notification dated 7.1.2009 in view of the minutes of Board meeting held on 18.3.2009. A copy of the extract of the minutes of the Board held on 18.3.2009 was also filed before us. It was very clear from the perusal of this that the arrears of pay revision were to be paid by the assessee in two instalments i.e. first instalment being 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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