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TMI Blog2017 (11) TMI 1754X X X X Extracts X X X X X X X X Extracts X X X X ..... e file of the AO to verify the stand of the assessee Addition treating the fully allowable expense as not accrued and crystallized during extant period deduction u/s 43B claimed - Held that:- As against the provision, the assessee made payment of ₹ 95,90,000/- and the tax rates are uniform for the relevant and subsequent assessment years, as such in a tax neutral scenario, it is fair to allow the expenditure for this assessment year. We, therefore, allow this ground of appeal and direct the AO to delete the addition on this count. Appeal of the assessee is allowed in part for statistical purposes. - ITA No. 5919/Del/2014 - - - Dated:- 9-11-2017 - SH.G.D.AGRAWAL, HON BLE PRESIDENT AND SH.K.N.CHARY, JUDICIAL MEMBER For t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpenses wholly and exclusively for the purpose of business, laid down in section 37(1) of the Income Tax Act, 1961 (in short Act ), the AO disallowed the same. So also challenging the demand of ₹ 16,91,79,394/- on account of excise duty for the period from 01.04.1994 to 03.10.1996 on blended perfumery compounds, the assessee preferred the appeal before CESTAT and by order dated 27.04.2011, CESTAT confirmed the same. Provision for this liability to an extent of ₹ 1,04,10,000/- was credited in the books of accounts for AY 2004-05, another sum of ₹ 7,50,00,000/- was deposited during the FY 2005-06 and during the year, provision for ₹ 8,37,69,394/- was created. Out of this provision, the assessee paid a sum of ₹ 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that unlike the cases relied upon by the AO in this matter, the liability was definite and the provision was created during the relevant FY to the tune of ₹ 8,37,69,394/- out of which only a sum of ₹ 95,90,000/- was paid before the due date for filing the return. According to the assessee, in view of the fact that the provision was very much available during the FY, the liability was crystallized before the due date for filing the income tax returns, the payment of ₹ 95,90,000/- towards the excise duty is an allowable expenditure for the AY 2011-12. Factually, there is no dispute that there was a demand under challenge in respect of ₹ 16,91,79,394/- towards excise demand, creation of provision to a tune of ₹ 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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