TMI Blog2019 (7) TMI 1320X X X X Extracts X X X X X X X X Extracts X X X X ..... nding the matter back to the AO for verification of the additional evidence. We accordingly set aside the impugned order of the ld. CIT(Appeals) on this issue and restore the matter to the file of the AO for deciding the same afresh after verifying the additional evidence filed by the assessee. Grounds are accordingly treated as allowed for statistical purposes. Disallowance of provision made for leave encashment - HELD THAT:- As the issue involved in the present case as well as the material facts relevant thereto are similar to the case of the SRB Associates LLP [ 2017 (9) TMI 1833 - ITAT KOLKATA] , we respectfully follow the order of this Tribunal passed in the said case and restore the matter to the file of the AO for fresh adjudication as per the direction as given in the case of M/s. SRBC Associates LLP. Addition of provision made for difference in General Ledger (GL) and Detailed Ledger (DL) - HELD THAT:- Provision made by the assessee on account of difference between General Ledger and Detailed Ledger as per the guidelines of the RBI is such that the same cannot be said to be a provision made for any obligation or liability. As rightly held by the authorities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... um of ₹ 10,00,000/- was debited on account of provision made for Non-Performing Assets (NPA). According to the Assessing Officer, the said provision made by the assessee was for a contingent or unascertained liability and the same was not allowable as deduction under the Income Tax Act, 1961. He, therefore, disallowed the claim of the assessee for deduction on account of provision made for NPA. On appeal, the ld. CIT(Appeals) confirmed the said disallowance made by the Assessing Officer for the following reasons given in his impugned order:- I have carefully considered the facts of the case and the submissions of the assessee. As discussed above, it is ultimately the RBI which decides and publishes the data about Rural branches and there is no difference between the concept of rural branches as used by RBI vis-a-vis that of NABARD. A Rural branch should be situated in a village, which may be under Gram Panchayat or in a town but the population should not exceed 10000. So the first requirement is that the location should be a village, as per the Revenue Records of the district. Assessee's reliance on the Ward-wise population data of Mi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and substantiate its case:- (i) A copy of the Population Certificate dated 01.09.2016 issued by the District Planning Officer, Paschim Midnapore; (ii) A copy of the Certificate dated 01.09.2016 issued by the Assistant Registrar of Cooperative Societies, Paschim Midanpore Range. He has filed the above documentary evidence as additional evidence before the Tribunal along with an application seeking admission thereof on the ground that the same obtained by the assessee after passing of the impugned order of the ld. CIT(Appeals) is relevant to decide the issue involved in Grounds No. 1 to 3 of the assessee s appeal. He has also submitted that this issue may be sent back to the Assessing Officer for deciding the same afresh after verifying the additional evidence filed by the assessee. Keeping in view the relevance of the additional evidence filed by the assessee, the same is admitted by us. The ld. D.R. has also not raised any objection for the admission of the additional evidence as well as for sending the matter back to the Assessing Officer for verification of the additional evidence. We accordingly set aside the impugned order of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave perused the records of the case. We find that Tribunal on identical issue in ITA No. 1787/KOL/2008 in the case of M/s. Ernst Young Pvt. Ltd. has observed at para 12 in page 6 as under:- 12. Ground No. 5 of the revenue's appeal is against the relief allowed by the CIT(A) in respect of provision for leave encashment which was deleted by the CIT(A) following the decision of the Hon'ble jurisdictional High Court in the case of M/s. Exide Industries Ltd. (supra). It was pointed out by the Id. OR that the Hon'ble Apex Court in SLP (Civil) 22889 of 2008 has stayed the operation of the decision of the Hon'ble jurisdictional High Court. In view of the above, we set aside the orders of the authorities below on this point and restore the matter back to the file of the AO with the direction that he will readjudicate this issue as per decision of the Hon'ble Apex Court in the case of M/s. Exide Industries Ltd. (supra) . Respectfully following the same we set aside the orders of authorities below on this point and restore the matter back to the file of Assessing Officer for adjudication as per the decision of the Hon'ble Apex C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9. We have heard both the sides on this issue and also perused the relevant material available on record. It is observed that the provision made by the assessee on account of difference between General Ledger and Detailed Ledger as per the guidelines of the RBI is such that the same cannot be said to be a provision made for any obligation or liability. As rightly held by the authorities below, there is no provision in the Income Tax Act under which the said provision can be allowed as deduction. We, therefore, find no infirmity in the impugned order of the ld. CIT(Appeals) confirming the disallowance made by the Assessing Officer on account of provision made by the assessee for the difference in its General Ledger and Detailed Ledger and upholding the same, we dismiss Ground No. 5 of the assessee s appeal. 10. Now we shall take up the assessee s appeal for A.Y. 2012-13 being ITA No. 1852/KOL/2016, which involves a solitary issue relating to the disallowance made by the Assessing Officer and confirmed by the ld. CIT(Appeals) on account of provision made for NPA. Since this issue is similar to the one involved in Grounds No. 1 to 3 of the assessee s a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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