TMI Blog2020 (12) TMI 676X X X X Extracts X X X X X X X X Extracts X X X X ..... ARIA TOOLS [2015 (3) TMI 853 - SUPREME COURT] wherein held Assessee did not want spread over of this expenditure over a period of five years as in the return filed by it, it had claimed the entire interest paid upfront as deductible expenditure in the same year. In such a situation, when this course of action was permissible in law to the Assessee as it was in consonance with the provisions of the Act which permit the Assessee to claim the expenditure in the year in which it was incurred, merely because a different treatment was given in the books of accounts cannot be a factor which would deprive the Assessee from claiming the entire expenditure as a deduction. It has been held repeatedly by this Court that entries in the books of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of this appeal briefly stated are that the assessee is a company engaged in business of organizing and conducting chit funds for different groups. The assessee, for the Assessment Year 2014-15, debited a sum of ₹ 14,13,48,676/- as loss on own chits bidding and also claimed bid loss of ₹ 18,65,72,307/-. From the aforesaid amount, the assessee reduced an amount of ₹ 14,13,48,676/- being bid loss and claimed reduction of ₹ 4,52,23,631/- on account of bid loss. The assessee filed return of income on 30.09.2014 declaring a loss of ₹ 4,77,49,534/-. Thereafter, the assessee filed revised return on 29.10.2014 in which the assessee claimed bid loss of ₹ 14,13,48,676/-. The Assessing Authority, by an order dated 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ely, one debited in profit and loss account under the head 'other expenses' which relates to the period ending 31.03.2009 and the other one is reduced in the computation of income representing bid loss relating to the chit groups that extend to the subsequent years. It is therefore urged that the Assessing Authority had rightly held that the claim of the assessee that there is no scope to apportion any portion of bid loss to the remaining period of chit, cannot be accepted in view of the notification issued by the Central Board of Direct Taxes. It is also submitted that the claim of the assessee also is in violation of Section 145(1) of the Act and the same also violates the notification dated 25.01.1996 issued by the Board. It is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... when this course of action was permissible in law to the Assessee as it was in consonance with the provisions of the Act which permit the Assessee to claim the expenditure in the year in which it was incurred, merely because a different treatment was given in the books of accounts cannot be a factor which would deprive the Assessee from claiming the entire expenditure as a deduction. It has been held repeatedly by this Court that entries in the books of accounts are not determinative or conclusive and the matter is to be examined on the touchstone of provisions contained in the Act [See- Kedarnath Jute Manufacturing Co. Ltd. v. Commissioner of Income Tax (Central), Calcutta (1972) 3 SCC 252; Tuticorin Alkali Chemicals and Fertilizers ..... X X X X Extracts X X X X X X X X Extracts X X X X
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