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TMI Blog2021 (12) TMI 1435X X X X Extracts X X X X X X X X Extracts X X X X ..... rder for the sake of convenience and brevity. ITA No. 7277/DEL/2018 [Revenue's Appeal] 2. The first grievance of the revenue relates to the deletion of addition of Rs. 4,48,09,454/- made on account of consumption debtors. 3. At the very outset, the ld. counsel for the assessee stated that this quarrel is coming from the past many years and has been decided in favour of the assessee and against the revenue by the Tribunal since Assessment Year 2008-09 onwards. 4. The ld. DR fairly conceded to this. 5. We find force in the contention of the ld. counsel for the assessee. This Tribunal in the ITA No. 6080/DEL/2012 and 4097/DEL2013 for Assessment Years 2008-09 and 2009-10 has considered a similar quarrel on identical set of facts and has d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has also shown income against this expenditure. Before the learned CIT - A the assessee demonstrated by producing the copies of the deals of some of the parties and shown that it is not an asset or liability but actual expenditure. In view of this, he held that assessee is eligible for deduction of the above expenditure. The learned departmental representative could not point out any infirmity in the order of the learned CIT(A). Therefore, we confirm the order of the learned CIT(A) and dismiss ground number 4 of the appeal of the AO." 6. On finding parity with the facts of the appeal under consideration, Ground No. 1 is dismissed. 7. Second grievance relates to deletion of disallowance of Rs. 33,48,749/- u/s 14A of the Act and restricted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - towards leave and encashment. 13. During the course of scrutiny assessment proceedings, the assessee was asked to show cause as to why disallowance of unpaid leave and encashment of Rs. 76,75,736/- be not made. In light of the provisions of section 43B(f) of the Act which was inserted by the Finance Act 2001, w.e.f 01.04. 2002. 14. In its reply, the assessee claimed that claim of leave encashment on accrual basis is based on the judgement given by the Hon'ble Calcutta High Court in the case of Exide Industries Ltd 292 ITR 470. 15. The Assessing Officer was of the opinion that the said judgement of the Hon'ble Kerala High Court has been stayed by the Hon'ble Supreme Court in the case and it has been clarified that the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 'ble Apex Court. Needless to say, the assessee be given opportunity of hearing by following principles of natural justice. Hence, Ground No. 2, 2.1 2.2 & 2.3 are partly allowed. 8. As regards Ground No. 3, it is a matter of fact that the assessee has earned only Rs. 2,34,585/- as exempt income. The assessee also disallowed a sum of Rs. 29,04,491/- u/s 14A. The Ld. AR at the time of hearing contended that the said disallowance was erroneously made by the assessee. This issue needs to be verified. Therefore, we are remanding back this issue to the file of the Assessing Officer and decide the same afresh as per the records available. Needless to say, the assessee be given opportunity of hearing by following principles of natural justice. He ..... X X X X Extracts X X X X X X X X Extracts X X X X
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