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TMI Blog2019 (11) TMI 1700X X X X Extracts X X X X X X X X Extracts X X X X ..... rovisions in his profit and loss account. The reason for making provision could not be explained by the assessee. In this regard, he just submitted that the provisions have been made at the end of the year and it is reversed in the opening of next financial year. While going through the assessment order passed by the AO, the AO has not examined this issue as to what for the reason for making provisions and showing it as a liability and reversed it into the opening of the next financial year. This issue should have examined by the AO, however, he did not do so. After considering the totality of facts and circumstances of the case, the ld.Pr. CIT has rightly invoked his revisonary powers u/s.263 of the Act. Accordingly, we do not see an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccount which has been shown as an outstanding liabilities in the balance sheet in the Schedule -7. He also noted that there is no any comments in the tax audit report filed by the assessee in Form No.3CD regarding payment u/s.43B of the Act. Accordingly, the Pr. CIT invoked his revisionary powers available u/s.263 of the Act holding that there is an error/omission in the order passed by the AO and directed to revise the assessment order framed by the AO after disallowing the sum of ₹ 25,73,921/-. 3. Feeling aggrieved from the order of Pr. CIT, the assessee appealed before the Income Tax Appellate Tribunal. 4. Ld. AR filed his written synopsis which read as under :- 1. There is only one ground in this appeal challenging Pr. CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner of Income-tax v. Doom Dooma India Ltd. 3. Sec. 43B of the Act applies only to those deduction, which are otherwise allowable, claimed in computing income referred u/s. 28 of the Act (i.e. business income) which were not actually paid on or before the due date of filing of return u/s. 139. 4. While computing business income assessee has Actually not claimed any amount of ₹ 25,73,921/- (as explained in Point no 2(a) above) by debiting to Profit Loss Account as is evident from Recast of Profit Loss A/c after reducing the provision of Excise duty from both opening stock Closing Stock of Finished Goods. From the recast Profit Loss A/c along with recast schedule (9) of Finished Goods and Recasted Trading Manufacturing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. The Actual Liability to pay Excise duty is arise only at the time of despatch of finished goods. The finished goods lying in the stock on 31.03.2014 (in A/Y 14-15) were sold / despatched in April 2014 (i.e. AY 15-16) and excise duty on the same goods (along with sale of April 14 Finished goods) were adjusted against Input Credit on Purchases/Paid of total ₹ 48,37,392/- The necessary copies of sales Ledger, stock Register, Excise ledger (as Per Books) and Excise Return (form ER-1, Cenvat Utilised Register, Excise Duty Payment challan) for April 2014 are enclosed with this as enclosure No. 3 4. 9. As the Excise duty on the Finished Goods actually Paid/Adjusted in April 14 (as per the due date of Excise duty Act), hence the addi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee is making provisions in his profit and loss account. The reason for making provision could not be explained by the assessee. In this regard, he just submitted that the provisions have been made at the end of the year and it is reversed in the opening of next financial year. While going through the assessment order passed by the AO, the AO has not examined this issue as to what for the reason for making provisions and showing it as a liability and reversed it into the opening of the next financial year. This issue should have examined by the AO, however, he did not do so. After considering the totality of facts and circumstances of the case, the ld.Pr. CIT has rightly invoked his revisonary powers u/s.263 of the Act. Accordingly, we do ..... X X X X Extracts X X X X X X X X Extracts X X X X
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