9911796707
TMI Blog2012 (12) TMI 685X X X X Extracts X X X X X X X X Extracts X X X X ..... ACIT [2006] 153 Taxman 491 (Mad) though the facts are similar and the act of write off of debts by the assessee was unilateral." 3. The facts relating to raise this ground are that the assessee engaged in the business of offset printing. During the course of assessment proceedings, books of account were produced by the assessee, from which the AO noticed that the assessee had debited Rs. 12,18,718/- as bad debts and ledger extracts for the same were produced. The AO was of the view that as per the ledger extracts, there was no description as to why the debts had gone bad. He, therefore, made the addition of the said amount. Aggrieved, the assessee carried the matter in appeal before the CIT(A). 4. Before the CIT(A), the learned AR of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the revenue is dismissed. ITA NO. 30/Hyd/2011 - appeal by the assessee 9. Ground No. 1 is general in nature and, therefore, the same is not required to be adjudicated by us. 10. Ground No. 2 reads as follows:- "The learned CIT(A) erred in conf irming the action of the AO in rejecting the claim for deduction of Rs. 73,626/- being provision made towards leave encashment. The learned CIT(A) ought to have seen that the said liability accrued during the previous year and is allowable as a deduction." 11. The AO disallowed the assessee's claim for deduction of Rs. 73,626/- being provision made towards leave encashment, on the ground that the same was not paid before the due date for filing of the return of income. On appeal, the CIT(A) co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made to an irrecoverable trust for the exclusive benefit of the employees which is approved by the CIT as per the provisions of section 36(1)(v) of the Act. The AO, therefore, disallowed the said claim of the assessee by holding that in the absence of any proof that the scheme was approved by the CIT and also relying on the decision in the case of Sony India Pvt. Ltd., Vs. CIT (Del.) 285 ITR 123, the claim was disallowed. On appeal, the CIT(A) confirmed the disallowance made by the AO as no evidence was produced before him. Aggrieved by the order of the CIT(A), the assessee is in appeal before us. 15. We have heard the arguments of both the parties and perused the record. We find that the issue under consideration is covered by the decisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpended wholly and exclusively for the purposes of the business or profession, while computing income chargeable to tax. The main contention of the revenue is that u/s 36(1)(v) the payment made by the assessee as employer could be allowed only in respect of approval gratuity fund. Since the group gratuity scheme is not approved by CIT, according to the revenue, it cannot be allowed. However, the contention of the assessee is that in view of the judgement of the Madras High Court in the case of Premier Cotton Spinning Mills Ltd. and the judgement of the jurisdictional High Court in the case of Warner Hindustan Ltd. it has to be allowed. We have carefully gone through the judgement of the jurisdictional High Court in the case of Warner Hindu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visions of sec. 41(1) of the Act do not apply to the facts of the case. The learned CIT(A) ought to have held that the said sum does not represent the income of the appellant." 18. The CIT(A) wrongly held in his order at para 7.2 that the said ground is covered by his own order. The said para is reproduced below:- "7.2 I have considered the arguments of the appellant as well as facts of the case. This issue has been decided by me vide my order in ITA No. 371/DC-16(1)/CIT(A)V/2007-08 dated 16/04/2010 in the case of the appellant. Since the issue involved is identical, the decision as outlined in the aforementioned order also applies to the current case. Accordingly, I hold that the addition made by the AO is correct and does not require a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
