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TMI Blog2013 (3) TMI 461X X X X Extracts X X X X X X X X Extracts X X X X ..... nd direct the A.O. to delete the disallowance. Regarding the dissallowances of expenses - Held that:- in absence of complete supporting vouchers the entire expenses cannot be allowed as deduction as wholly and exclusively for the purposes of business. Therefore some disallowance is justified. This ground by the assessee is partly allowed. - ITA No. 6457/Mum/2009 - - - Dated:- 27-1-2012 - SHRI N.V. VASUDEVAN AND SHRI R.K. PANDA, JJ. Appellant by Shri Mehendale Respondent by Shri Ashok Sharma ORDER PER R K PANDA, AM This appeal filed by the assessee is directed against the order dated 30.09.2009 of the CIT (A)- 13, Mumbai relating to assessment year 2003-04. 2. In grounds of appeal No. 1 the assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ystem of accounting and, therefore, the statutory liability relating to earlier years cannot be allowed in the year of payment, in view of the decision of the Hon ble Supreme Court in the case of Haji Lal Mohd. Biri Works v. CIT reported in 224 ITR 591 (SC). Aggrieved with such order of the ld. CIT(A), the assessee is in appeal before us. 2.4 The ld. Counsel for the assessee submitted that in view of the provisions of section 43B the statutory dues such as ESIC are to be allowed on payment basis. Since the amount has been determined during the impugned assessment year and paid during the assessment year, therefore, in view of the provisions of section 43B, the same has to be allowed as deduction in the impugned assessment year. Referrin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on by the ld. CIT(A). From the paper book filed on behalf of the assessee we find the assessee has paid the arrears to ESIC relating to different assessment years during the impugned assessment year after the same was quantified by the ESIC authorities in the assessment. Therefore, this amount has crystallised during the year. Further in view of provisions of section 43B, payment to ESIC is allowable only on actual payment basis. Therefore, prior period expenses of Rs. 1,68,849/- being the ESIC payment which was quantified in assessment during the financial year 2002-03 and crystallised, in our opinion, is an allowable expenditure. In this view of the matter, we set aside the order of the ld. CIT(A) and direct the A.O. to delete the dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sis. In appeal, the ld. CIT(A) upheld the action of the A.O. Aggrieved with such order of the ld. CIT(A), the assessee is in appeal before us. 3.2 We have considered the rival arguments made by both the sides, pursued the orders of the Assessing Officer and the CIT(A) and the paper book filed on behalf of the assessee. Admittedly the assessee filed branchwise and month-wise details of various expenses incurred by it. Due to the nature of expenses we are satisfied with the explanation given by the assessee that full supporting vouchers in certain cases may not be possible. At the same time in absence of complete supporting vouchers the entire expenses cannot be allowed as deduction as wholly and exclusively for the purposes of business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 75,000/- holding the same to be not supported by proper bills and vouchers. Similarly he disallowed freight charges refund for want of names of receiving parties. In appeal, the ld. CIT(A) confirmed the disallowance made by the A.O. 4.2 After hearing both the sides we find the assessee has filed full details of branch-wise and month-wise expenses for the above items. It is an admitted fact that the entire expenses were not fully verifiable for want of supporting vouchers/bills and in many cases payments were made by selfmade vouchers. Therefore, some disallowance under the facts and circumstances of the case is justified. However, the disallowances out of the above amounts as mentioned earlier appear to be on higher side. We there ..... X X X X Extracts X X X X X X X X Extracts X X X X
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