TMI Blog2020 (10) TMI 1082X X X X Extracts X X X X X X X X Extracts X X X X ..... incurred by assessee in respect of the same. In the interest of Justice, we remand the issue to Ld.AO to verify the submissions of assessee in light of the contract entered into with BMRCL. Assessee is directed to furnish all requisite details in support of its claim. Ld.AO is then directed to consider the claim of assessee in accordance with law. Grounds raised by revenue stands allowed for statistical purposes - ITA No.2501/Bang/2019 - - - Dated:- 9-10-2020 - Shri. B. R. Baskaran, Accountant Member And Smt. Beena Pillai, Judicial Member For the Appellant : Shri V Srinivasan, Advocate For the Respondent : Shri Muzaffar Hussain, CIT (DR) ORDER PER BEENA PILLAI, JUDICIAL MEMBER Present appeal has been filed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0/11/2013, declaring gross total income at nil . Assessee claimed current year business loss at ₹ 2,38,02,141/-. The case was selected for scrutiny and notice under section 143(2) and 142(1) of the Act was issued to assessee in response to which, representative of assessee appeared before Ld.AO and filed requisite details as called for. 4. Ld.AO observed that assessee shown outstanding expenses towards provision for expenses, amounting to ₹ 26,64,07,546/- out of which, ₹ 7,85,14,570/- has been claimed as expenditure towards provision for future expenses for the current year. Assessee was called upon to show cause as to why the same should not be disallowed and added back to the total income for year under considerat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 126 and 1822/Bang/2016, wherein this Tribunal, relying on decision of Hon ble Supreme Court in case of BEML Ltd., reported in 245 ITR 482 took a view that, provision can be allowed as deduction provided the 2 conditions stands satisfied namely: (1) incurring of liability must be certain and (2) the basis of quantification of the future expenses should be scientific and reasonable. 8. Ld.CIT(A) observed that, this Tribunal allowed claim of assessee, since both these conditions stood satisfied in assessment year 2011-12 and 2012-13. 9. Aggrieved by order of Ld.CIT(A), revenue is in appeal before us now. 10. Ld.CIT.DR submitted that, all issues raised in present appeal are in respect of provision allowed by Ld.CIT(A). At the out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provision satisfies both conditions laid down by Hon ble Supreme Court referred to by this Tribunal in preceding assessment years. 13. We have perused submissions advanced by both sides in light of records placed before us. 14. From the records, we note that, Ld.AO did not verify agreement with BMRCL and conditions stipulated therein. Assessee has referred to page 63 of paper book, wherein, year wise provisions made an actual amount of expenses incurred debited to provision account has been summarised. Page 64-74 of paper book Ledger extract of expenses so incurred, for which, provisions were created in the past. It has also been submitted that, certain expenses has been incurred by assessee over and above the provision which has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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