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2016 (6) TMI 1357 - ITAT CHANDIGARHAccrual of expenses - Addition on account of financial assistance u/s 43B - Whether it is not a statutory liability and a voluntary liability agreed by the assessee to be paid to the families of the deceased employees of the assessee? - HELD THAT:- The assessee was liable to provide financial assistance to the family of deceased employees, the calculation of the quantum being also specified in the notification. So far there is no dispute. But we find that theAR has not been able to demonstrate before us with the help of evidence that such liability arose during the year. It has not been shown as to why liability on account of aforesaid four persons was created during the year. If the persons were deceased employees, no evidence to that effect was brought on record. No basis of the calculation of the financial assistance provided to the four employees was brought on record. During the course of hearing before us, a specific query was raised by the Bench regarding the allowability of the claim of the impugned provision and the basis of the same in response to which the Ld. AR referred to the notification reproduced above and the voucher place at Paper Book page no. 21-24 and 14 respectively detailing the employees on account of whom the provision was created. This, we find, does not establish that the impugned provision of expense had accrued during the year and pertained to the year under appeal. Since the basic ingredient for allowability of an expense / claim, has not been satisfied by the assessee, the onus for which undoubtedly lies on the assessee, we hold that the provision created for financial assistance is not allowable - Decided against assessee. Addition on account of service charges on gunny bags payable to Food and Supplies Department, Govt. of Haryana being payable for procurement of gunny bags by the said department - HELD THAT:- The facts in the present case, we find, are identical to that in the preceding year [2016 (6) TMI 1356 - ITAT CHANDIGARH] no document evidencing the creation of the charge was produced before us in the present case also, despite a specific query raised by the bench in this regard. The issue is covered by the order of the Hon’ble ITAT Bench Chandigarh in the preceding year and therefore respectfully following the same we hold that the provision for service charge is not allowable. - Decided against assessee.
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