9911796707
TMI Blog2023 (4) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee are directed against common order of the ld. Commissioner of Income Tax (Appeals) 11, Chennai, dated 07.08.2019 relevant to the assessment years 2015-15 and 2016-17. Considering the common grounds raised in both the assessment years, all the appeals were heard together and being disposed off by this common order for the sake of brevity. 2. The first ground raised in the appeal of the Revenue is relating to deletion of understatement of income of Rs.39,32,37,000/- for the assessment year 2015-16 and undisclosed lease rental income Rs.6,69,00,000/- for the assessment year 2016-17. In the assessment order for the assessment year 2015-16, on verification of the details furnished by the assessee, the Assessing Officer has noted that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. The Assessing Officer is directed to delete this addition of Rs.6,69,00,000/- for AY 2016-17. 3. The next ground raised in the appeal of the Revenue is relating to prior period expenses. In the grounds of appeal, the Revenue has contended that the ld. CIT(A) failed to apply the rationale for income as applied by the ld. CIT(A) in assessee's own case on an appeal against order u/s. 143(3) on the issue of prior period expenses of Rs.848,69,68,749/- for AY 2011-12, which was disallowed in the original assessment and was sustained on account of omission and negligence on the part of the assessee by the ld. CIT(A) while rendering judgement for the assessment years 2006-07 to 2013-14. 4. With regard to the above grounds raised by the Revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to confirmation of disallowance of guarantee commission. In the assessment order, the Assessing Officer has noticed from the schedules annexed to the Profit and Loss account that the assessee-company has claimed guarantee commission to State under the Head "INEREST AND FINANCE CHARGES". However, the Assessing Officer has observed that the guarantee commission was only a provision and never a payment for any of the earlier years. This commission is provided for the guarantee given by the Government of Tamilnadu on the portion of loans raised by it for its resource mobilization. It was further noted that the information furnished in earlier years, the assessee company has also received waiver from Government of Tamilnadu from payment of guara ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Principal Secretary to Government, the ld. Counsel for the assessee has submitted that the assessee has proposed to settle the outstanding guarantee commission of earlier years including the assessment years 2015-16 and 2016-17 and therefore, the addition made towards disallowance of the above expenses should be allowed. 6.3 On the other hand, the ld. DR has submitted that the assessee has not produced any evidence for the payment of outstanding guarantee commission and hence the expenses should not be allowed. 6.4 We have heard the rival contentions and perused the materials available on record. Admittedly, the assessee has proposed for payment of outstanding guarantee commission in 15 equal monthly instalments. However, the assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stical purposes. 8. The next common ground raised in the appeals of the assessee relates to confirmation of certain prior period expenses for both the assessment years. Since, similar issue raised by the Revenue for both the assessment years hereinabove have been remitted back to the file of Assessing Officer, we remit the ground raised by the assessee also to the file of the Assessing Officer for fresh consideration. 9. The next common ground raised in the appeals of the assessee relates to confirmation of disallowance of over statement of expenditure. As per the observations of the Accountant General of Tamil Nadu, the Assessing Officer has disallowed the over statement of expenditures for both the assessment years, which was confirmed ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
