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TMI Blog2016 (7) TMI 695X X X X Extracts X X X X X X X X Extracts X X X X ..... interest of justice we are restoring back the matter to the file of the AO to decide the issue afresh after going through the returns of income, P&L accounts, balance sheet of the earlier years. Assessee is directed to provide these basic documents to the AO - Decided in favour of assessee by way of remand. Disallowance on account of the late payment of PF - Held that:- We find that in the case of Ghatge Patil Transports (2014 (10) TMI 402 - BOMBAY HIGH COURT ), the Court had held that if the payments were made before the due date of filing of return of income, no disallowance can be made as per the provisions of section 36(1). Respectfully, following the above judgment of the Hon'ble Bombay High Court, we decide Ground in favour of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd No. 3 is about confirming the disallowance of ₹ 9. 72 lakhs on account of excess provisions written back by the assessee. During the assessment proceedings it was found by the AO that the assessee had credited an amount of ₹ 9, 72, 920/- to its P L Account on account of excess provision written back, that the assessee had claimed that the said amount was on account of provisional liability and not actually ascertained liability, that same was to be reduced while calculating the taxable income, that the unascertained liability could not be assessed to tax, that in the earlier years it had debited the P L account and had added back the said provisions though no deduction was claimed in respect of the liabilities in the past, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailable to AO as well as FAA, we are of the opinion that before taking an adverse view they should have verified the facts from the available records or should have directed the assessee to file the same. Considering the peculiar facts and circumstances of the case, we are of the opinion that the issue needs further verification. So, in the interest of justice we are restoring back the matter to the file of the AO to decide the issue afresh after going through the returns of income, P L accounts, balance sheet of the earlier years. Assessee is directed to provide these basic documents to the AO. Third Ground is decided in favour of the assessee, in part. 4. Next Ground of appeal is about confirming the disallowance of ₹ 65, 922/- o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ases of Ghatge Patil Transports (368ITR749) and Hindustan Organics Chemicals Ltd. (366ITR1) of the Hon'ble Jurisdictional High Court. The DR left the issue to the discretion of the Bench. We find that in the case of Ghatge Patil Transports(supra), the Court had held that if the payments were made before the due date of filing of return of income, no disallowance can be made as per the provisions of section 36(1). Respectfully, following the above judgment of the Hon'ble Bombay High Court, we decide Ground No. 4 in favour of the assessee. 5. Last Ground of appeal deals with disallowance of expenses claimed under the head travelling and conveyance expenditure amounting to ₹ 5. 92 lakhs. During the assessment proceedings th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; 5. 92 lakhs. 5. 2. Before us, the AR contended that the assessee had filed all the necessary details, that the FAA did not call for reconciliation of the alleged difference, that proper verification of the expenditure was not done by either of the authorities. DR left the issue to the discretion of the Bench. We have heard the rival submissions and perused the material before us. We find that the assessee had filed additional evidence before the FAA who had forwarded it to the AO for comments, that the AO had not filed the remand report till the FAA passed his order. In our opinion, issue needs further verification. So, in the interest of justice, we are restoring the matter to the file of the AO. He is directed to afford a reasona ..... X X X X Extracts X X X X X X X X Extracts X X X X
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