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TMI Blog2020 (8) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... e AO erred in disallowing annual maintenance charges for software amounting to Rs. 3,03,372/* out of total annual maintenance charges amounting to Rs. 3,37,080/- on the ground that the same do not pertain to the assessment year under consideration without appreciating that the Appellant had reversed prior period expenses amounting to Rs. 252,81- and claimed only the net expenditure. 2. The Appellant humbly prays that the AO be directed to delete the addition of Rs. 3,03,372/- and allow the actual claim made by the Appellant amounting to Rs. 50,562/- [3,37,080 (Actual Expense) - 2,52,810 (Reversed) - 33,708 (Allowed during assessment proceedings)]. 2. Brief facts of the case as extracted from the order of the lower authorities are that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d allowed expenses of one month only. The ld AR for the assessee submits that no details were required by assessing officer before making disallowance. Complete details were furnished to ld CIT(A) for expenses incurred by the assessee. It was explained that the assessee reversed the amount which was prepaid i.e. for the period 1st April 2014 to 31st December 2014 for nine months of Rs. 2,52,810/- (being 3,37,080/12*9). The ld CIT(A) confirmed the action of assessing officer without verifying the facts by holding that no submissions was made by the assessee, though complete details were furnished and written submissions were also filed by the assessee. The ld AR for the assessee also submitted that copy of tax invoice / receipt of maintenanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on record, including the copy of tax invoice with regard to annual maintenance of Software and written submission, the ld CIT(A) affirmed the action of assessing officer without examining the facts by holding that no submissions were made by AR of the assessee. 6. We have further noted that the assessing officer in para 6.1 of his remand report dated 23.08.2018 accepted that the bills and vouchers submitted by the assessee are in order. The relevant part of remand report is extracted below. "6.1 On perusal of the submissions of the assessee filed during the appellate proceedings, it is seen that the submission as submitted by the assessee are bills and vouchers are found to be in order." 7. Considering the assessing officer in his reman ..... X X X X Extracts X X X X X X X X Extracts X X X X
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