2023 (3) TMI 404

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..... TMI 1860 - BOMBAY HIGH COURT] wherein as sustained the findings of Tribunal for netting of prior period income against prior period expenses. No interference is required. The ground is decided against the Revenue. Disallowance of staff welfare expenses - based on the opinion reported in 3CD report, the disallowance was made as the expense was not actually incurred - HELD THAT:- During the year under consideration, Ld. CIT(A) seems to have been carried with the fact that as expenditure was allowed in previous years, same should be allowed on principal of consistency but as every assessment is independent and if no evidence is on record to show that out of this reserved created to meet an exigency, at any point of time in the past or in .....

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..... -1(1), New Delhi (hereinafter referred to as the Assessing Officer or AO ). 2. The facts of the case is that the assessee is 100% subsidiary of Air India Ltd., Government of India undertaking, company engaged in business of transport of passengers and cargo by Air in the domestic sector. A return declaring loss of Rs. 83.60 crores was filed in the case was selected for scrutiny. The assessment was completed u/s 143(3) by accepting the taxable income however, subsequent to the audit objection proceeding u/s 147 of the Act were initiated by issuance of notice u/s 148 of the Act and thereupon after taking the reply of the assessee the Ld. Assessing Officer made following additions; 1st Rs. 70,07,775/- on account of prior period expense .....

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..... rm of reimbursement and the discount allowed by the vendors or rectification entries passed in the accounts to the extent of Rs. 70,07,775/- against Rs. 93,95,600/- prior period expenses which had crystallized during the year and the net of the debit of Rs. 23,87,858/- have been voluntary added by the assessee to the computation of income. Therefore, Ld. CIT(A) on facts and law following order of co-ordinate bench in DCIT-6, Kanpur vs. UP State Handloom Corporation Ltd. ITA No. 190 and 191/LKW/2014 wherein it was held that if any disallowance is required to be made in regard to it, same can only be made with respect to net prior period expenses debited to the profit and loss account of the current year. Reliance in this regard can also be p .....

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