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TMI Blog2015 (12) TMI 1839X X X X Extracts X X X X X X X X Extracts X X X X ..... send this issue back to the file of AO with the direction that he shall exercise his requisite powers under the law to call for requisite information from the concerned payees. The assessee shall also extend full cooperation to the AO by furnishing all the documents and details in the form of names and address, PAN nos. place of assessment and confirmations etc., to the extent as feasible for the assessee. Needless to add, the AO shall give adequate opportunity of hearing to the assessee. Thus, these grounds are allowed for statistical purposes. Prior period expenses - HELD THAT:- We find that the claim of the assessee should not have been denied in this manner by the lower authorities. We send this issue back to the file of the AO to consider this claim after verification of requisite facts taking cognizance of the revised computation filed by the assessee during the course of assessment proceedings. Thus, this ground is allowed for statistical purposes. Claim on account of contribution to PF and ESIC - HELD THAT:- As already held that the claim has been rightly allowed by the CIT(A), therefore, following our order as has been given in the asessee s appeal, we uphold th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A) rejected the claimed and confirmed the disallowance. 6. On the facts and in the circumstances of the case as well as in law, the learned CIT-(A) has erred in passing the order and confirming the additions made by Addl. CIT 6(1) in regard to interest on purchases paid of ₹ 74,090/-. 7. a. On the facts and in the circumstances of the case as well as in law, the learned CIT-(A) has erred in passing the order by upholding the assessing officer's view of not considering expenses of ₹ 18,41,716/- disallowed in the A.Y. 2010-11 as prior period expenses claimed as allowable expense in the second revise statement of total income along with letter dated 12.12.2011. b. The expenses being genuine business expenses incurred by hour appellant for the business purposes only and hence either allowable in A.Y. 2009-10 or A.Y. 2010- 11. 3. Ground No.2: This ground has not been pressed by the Ld. Counsel of the assessee and therefore same is dismissed. 4. Ground Nos. 1, 3, 4, 5 6: In these grounds the assessee has challenged the action of Ld. CIT(A) in confirming the additions made by the AO by invoking the provisions of section 40(a)(ia) of the Act. 4.1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee should be provided with full opportunity to explain its case, before final tax liability is determined against it applying such deeming provisions. It is noted that second proviso was inserted to section 40(a)(ia) to mitigate hardships of the tax payers. The said proviso has been inserted to avoid the unintended consequences created by section 40(a)(ia). Under these circumstances, its benefit should be given to all the assessees irrespective to the fact that at what stage their cases are pending. It is further worth noting that Hon ble Delhi High Court in the case of CIT vs. Ansal Land Mark Township (P) Ltd. (supra) has discussed this entire issue at length, and held that second proviso is declaratory and curative and has retrospective effect from 1st April 2005. In view of this major legal development, we find that the assessee deserves another opportunity. In view of the same, we send this issue back to the file of AO with the direction that he shall exercise his requisite powers under the law to call for requisite information from the concerned payees. The assessee shall also extend full cooperation to the AO by furnishing all the documents and details in the form of nam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation. Before we proceed further, it was noted by us that the assessee had made another claim in the similar manner by way of filing of revised computation of income during the course of assessment proceedings on account of payment of PF and ESIC, which as disallowed u/s 43B in the original return but was claimed in the revised return by the assessee during the course of assessment proceedings. The AO disallowed the said claim, for the same reason due to which claim of prior period expenses was disallowed. But the Ld. CIT(A) allowed this claim. While allowing this claim, Ld. CIT(A) has made detailed discussion in the order. He relied upon the land mark circular of the board i.e. circular No.14 (XL-35) dated 11th April 1955, issue by the Board of Revenue (now known as Central Board of Direct Taxes). He also discussed various judgments of different High Courts and also from Hon ble Supreme Court, and after discussing the entire legal position, it was held by him that legitimate claim of the assessee cannot be denied. The concluding Para s of his order are reproduced below: 8.12 These cases vis-a-vis the circular No. 14 (XL-35), dated 11th April, 1955 issued by the Board, thus in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt in the case of Goetze India Ltd. (supra). We find nothing wrong, on facts or in law in the aforesaid well reasoned findings of Ld. CIT(A). In our view, the impugned claim of prior period expenses should have been allowed by him on the same reasoning. 5.7. It is further noted by us that similar claim has been allowed by Ld. CIT(A) in assessment year 2010-11 by relying upon the judgment of Hon ble Bombay High Court in the case of CIT vs. Pruthvi Brokers and Shares Pvt. Ltd. 349 ITR 336, wherein judgment of Hon ble Supreme Court in the case of Goetze India Ltd. (supra), has also been discussed, therefore, we do not find any reason to take a different view in this year for a similar claim. 5.8. Thus, taking into account all the facts and circumstances of the case and clear position of law, we find that the claim of the assessee should not have been denied in this manner by the lower authorities. We send this issue back to the file of the AO to consider this claim after verification of requisite facts taking cognizance of the revised computation filed by the assessee during the course of assessment proceedings. Thus, this ground is allowed for statistical purposes. 6. Groun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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