TMI Blog2018 (6) TMI 500X X X X Extracts X X X X X X X X Extracts X X X X ..... aluation of perquisites offered to the employees as part of overall packaging and accounted for as a short term provision since LTA has to be availed by the employee in every block of two years and has to be disbursed by the employer as taxable perquisites - thus there is a mistake which is apparent from record in the findings of the first appellate authority - hence AO is allowed to delete the ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment order dated 29.11.2012 framed u/s 147 r.w.s 143(3) of the Act. 4. While framing the assessment, the Assessing Officer disallowed the claim of the LTA holding that the assessee has changed the method of accounting from the year under consideration and the basis of the claim is not scientific. The assessee agitated the matter before the ld. CIT(A) but without any success. The relevant f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asis or on the basis of any actuarial basis and, therefore, this provision for LTA remains to be a provision unsupported by any logic or scientific methodology. It has to be appreciated that provisions cannot be allowed as an expense under the Income Tax Act unless the onus has been established by the A.R. of the appellant that these provisions are clearly ascertained liabilities and are based on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion to the paper book and pointed out that the assessee has given supporting evidences in respect of valuation of LTA. It is the say of the ld. counsel for the assessee that not considering the scientific basis of the valuation of LTA has made the order of the ld. CIT(A) erroneous in as much as the mistake was very much apparent from record and should have been rectified. 8. Per contra, the ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... way of rectification application, the same was also dismissed. 11. In our considered opinion, there is definitely a mistake which is apparent from record in the findings of the first appellate authority. Considering the facts in totality, we allow this appeal of the assessee and direct the Assessing Officer to delete the addition of ₹ 30.97 lakhs. 12. In the result, the appeal of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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