9911796707
TMI Blog2017 (11) TMI 270X X X X Extracts X X X X X X X X Extracts X X X X ..... family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-fareast-language:EN-US;} Shri R.S. Syal, Vice President And Shri Kuldip Singh, Judicial Member Assessee By : Shri Ved Jain, Advocate & Shri Ashish Chadha, CA Department By : Ms Shefali Swaroop, CIT DR ORDER R.S. Syal, VP: These two cross appeals - one by the assessee and the other by the Revenue arise out of the order passed by the CIT(A) on 27.08.2014 in relation to the A.Y. 2007-08. 2. Briefly stated, the facts of the case are that the Assessing Officer initiated reassessment proceedings. The assessee's objections against the initiation of reassessment were dismissed. Ex consequenti an addition of Rs. 1,97, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me tax purpose is one which is towards a liability which actually exists at the time increase in liability at any point of time prior to payment cannot fall within the meaning of the word "expenditure" in section 37 (1). The requirement of expenditure is not met in this case. Similarly the requirement of money "expended or laid out" is also not satisfied and thus claim of deduction is not allowable u/s 37 (1) . 2. In the A. Y. 2006-07 the entire amount of these deposits were disallowed and added back to the income of the assessee as the same was treated on a nonexistent head of account held to be not payable by the assessee and were entirely taxed in that year. 3. In view of the above I have reason to believe that income of Rs. 19.74 Mill ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the order for the assessment year 2006-07 was passed. We are unable to comprehend the basis for initiation of the extant reassessment proceedings, being, the order passed for assessment year 2006-07. When the Assessing Officer passed the original order for the instant year u/s 143(3) of the Act, he was fully aware of the assessment order passed for the immediately preceding assessment year on the same date in which such disallowance of interest was made. Having accepted the deductibility of interest on deposits in the assessment order for the instant year, we fail to appreciate as to how the Assessing Officer could later on take cognizance of the assessment order for assessment year 2006-07, passed simultaneously with the assessment order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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