TMI Blog2017 (5) TMI 1718X X X X Extracts X X X X X X X X Extracts X X X X ..... e and cannot be faulted. Thus, we do not see any merit in the grievances raised by the assessee as per Ground Nos.1 to 3 of its appeal. Resultantly, Ground Nos.1, 2 3 are dismissed. Disallowance of prior period expenses - disallowance has been made on the ground that the expenses under various heads as noted in the assessment order pertained to earlier years and the assessee which is following system of accounting should have made provision for expenses in those respective years and claimed them as deduction - HELD THAT:- Assessee is a State Government Undertaking and its accounts are subjected to review by CAG and therefore it cannot be postulated that there was any deliberateness in not furnishing relevant details before the revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng aside the disallowance of ₹ 9,10,80,852/- on account of non-reconciliation of provision for Gratuity despite the fact that all the facts necessary for deciding the issue were submitted at the time of hearing of the appeal. 2.0 The learned Commissioner of income Tax (Appeals) has erred in law and on facts in setting aside the disallowance of ₹ 5,06,818/- on account of unpaid sales tax under section 43B of the IT Act despite the fact that all the facts necessary for deciding the issue were submitted at the time of hearing of the appeal. 3.0 The learned Commissioner of Income Tax (Appeals) has erred in law and on facts in setting aside the disallowance of ₹ 89,13,462/- on account of unpaid bonus under section 43B o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case and cannot be faulted. Thus, we do not see any merit in the grievances raised by the assessee as per Ground Nos.1 to 3 of its appeal. Resultantly, Ground Nos.1, 2 3 are dismissed. 4. Ground No.4 concerns disallowance of prior period expenses of ₹ 53,53,28,278/-. In the course of hearing, the Ld.AR for the assessee Mr.J.P.Shah submitted that the assessee has credited prior period income of ₹ 68,45,01,805/- in its Profit Loss account concerning the earlier years. Likewise, total prior period expenses of ₹ 1,21,98,30,083/- connected to earlier years have been debited during the year. Resultantly, the assessee has claimed net prior period expenses of ₹ 53,53,28,278/- as its business expenses. The Ld.AR fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmitted that similar issue arose in assessee s own case in ITA No.3796/Ahd/202 relevant to AY 1997-98 order dated 26/06/2009 where the issue was set aside to the file of AO adopting common sense approach. The Ld.AR accordingly pleaded for suitable relief. 5. The Ld.DR for the Revenue Mr.R.I.Patel, on the other hand, relied upon the order of authorities below and in furtherance submitted that the factual details concerning the expenses claimed requires to be verified which has not been placed on record before the lower authorities. 6. We have carefully heard the rival submissions and perused the orders of the authorities as well the case-laws referred. The assessee is aggrieved by the disallowance of prior period expenses of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n by the Hon ble Gujarat High Court in the case of Adani Enterprises Ltd. (supra) while adjudicating the issue. Needless to say, reasonable opportunity shall be provided to the assessee while adjudicating the issue. Hence, all the contentions of the assessee are kept open. The issue raised as per Ground No.4 is thus set aside to the file of AO in terms of directions noted above. As a result, Ground No.4 is allowed for statistical purposes. 7. Ground No.5 concerns initiation of penalty proceedings which is pre-mature and does not call for any separate adjudication and accordingly dismissed. 8. Ground No.6 is general in nature does not require any adjudication. 9. In the result, appeal of the assessee is partly allowed. This ..... X X X X Extracts X X X X X X X X Extracts X X X X
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