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TMI Blog2014 (7) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... 1213.39 crores made by the Assessing Officer on account of capital recovery on leased assets. 2. On the facts and the circumstances of the case and in law, the Ld. CIT (A) has erred in deleting the addition of Rs. 1,94,652/- made by Assessing Officer to book profit u/s 115JB on account of provision for gratuity. 3. On the facts and the circumstances of the case and in law, the Ld. CIT (A) has erred in deleting the addition of Rs. 6,89,163/- made by Assessing Officer to book profit u/s 115JB on account of provision for leave encashment. 4. On the facts and the circumstances of the case and in law, the Ld. CIT (A) has erred in deleting the addition of Rs. 8,57,50,252/- made by Assessing Officer on account of disallowance of bond issue exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... round no.6, he argued that Assessing Officer had rightly made the addition on account of disallowance of depreciation on capitalized value of foreign currency fluctuation and Ld. CIT (A) has wrongly held that the issues related to earlier year. 4. The Ld. AR arguing ground no.2 and 3 submitted that these are not provisions and rather these were ascertained liabilities and, therefore, were rightly deleted by Ld. CIT (A). He further submitted that issues were fairly covered in favour of assessee and relied upon the following case laws: 1) 336 ITR 054 (Del) in the case of CIT vs. I L PEA paramount (Pvt.) Ltd. 2) 314 ITR 055 (Del) in the case of CIT vs. Hewlet Packard India (Pvt.) Ltd. 3) 251 ITR 015 (Bom) in the case of CIT vs. Echjay Forg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. vs. CIT 4) 229 ITR 203 (Mad) in the case of CIT vs. South India Viscose Ltd. 5) 219 ITR 178 (Bom) in the case of CIT vs. Tata Hydro Electric Supply Company Ltd. 6. We have heard the rival contentions of both the parties and have gone through the material placed on record. We find that first ground of appeal is covered in favour of assessee by Tribunal's order in ITA Nos. 699,359, 3357 and 2109 for assessment year 1997-1998 to 2000 -2001 vide order of Tribrunal dated 08.08.2008. The relevant findings of Hon'ble Tribunal in these appeals are as under: "The chart for 30 years of opening balance in the present year i.e. A. Y. 1997-98 is submitted by the Ld. AR of the assessee. As per the same, opening balance of leased assets is Rs. 126, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ound no.4&5, regarding disallowance of bond expenses is covered in favour of assessee vide Tribunal's order relating to assessment year 1997- 98 to 2000-2001& Hon'ble Tribunal has held as under: "It is submitted by Ld. AR of the assessee before us that this issue is now covered in favour of the assessee by the judgment of Hon'ble jurisdictional High Court rendered in the case of CIT vs. Khirnani Chemicals Ltd. as reported in 290 ITR 196 (Del), Reliance was also placed on the judgment of the Hon'ble Madras High Court rendered in the case of VIT vs. South India Corporation as reported in 290 ITR 217. It was submitted that in the case, Hon'ble High Court has decided similar issue in favour of the assessee after considering CBDT Circularno. 56 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as held as under: "We have considered the rival submissions. There is no dispute about the allowability of expenses. Only dispute is regarding the year of allowability. If the Assessing Officer is of the view that the expenses are pertaining to the prior period, the same are required to be considered for the prior period and allowed in that year. If it is found that the expenses are allowable in this year on the basis of crystallization of liability, the same may be considered in the year under appeal. The assessee is, therefore, directed to place necessary evidence in support of claim of expenses. The Assessing Officer on appreciation of evidence may determine the year of allowability and allow the same in either of the years." 10. Since ..... X X X X Extracts X X X X X X X X Extracts X X X X
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