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TMI Blog2023 (4) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... o the file of the Assessing officer for fresh adjudication after detailed verification of claims of the assessee in accordance with law by affording sufficient opportunities of being heard to the assessee. Disallowance of guarantee commission - AO 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 - HELD THAT:- Admittedly, the assessee has proposed for payment of outstanding guarantee commission in 15 equal monthly instalments. Assessee has not produced any evidences towards approval of the Government for the above proposal of the assessee or payment of guarantee commission as proposed by the assessee - in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount is disallowed in the assessment year 2015-16, the same may be directed to be allowed in the assessment year 2016-17 - HELD THAT:- We direct the Assessing Officer to examine and decide the issue afresh in accordance with law for both the assessment years by considering the explanations as may be submitted by the assessee. Appeals filed by the Revenue as well as assessee are allowed for statistical purposes. - I.T.A. Nos.3016 & 3017/Chny/2019 I.T.A. Nos. 3077 & 3078/Chny/2019 - - - Dated:- 6-1-2023 - Shri V. Durga Rao, Judicial Member And Shri Manoj Kumar Aggarwal, Accountant Member For the Department : Shri M. Rajan, CIT For the Assessee : Shri R. Vijayaragahavan, Advocate ORDER PER V. DURGA RAO, JUDICIA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee, the ld. CIT(A) has observed and held as under: 22. The submissions are considered. The Office of Accountant General had pointed out understatement of income by the assessee for AY 2015-16. The income of Rs.39,32,37,000/- for AY 2015-16 has been accounted by the assessee in AY 2016-17 considering the fructification of income in Financial Year 2015-16 on account of audit observation. To this extent, there is no need to bring this amount for taxation for AY 20156-16. Assessing Officer is directed to delete this addition of Rs.39,32,37,000/- for AY 2015-16. The explanation filed by the assessee for AY 2016-17 with respect to the amounts of Rs.6,69,00,000/- is accepted on facts considering the revenue neutral nature of accounting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the materials available on record and gone through the orders of authorities below. Against the disallowances of (1) understatement of income as well as lease rental income and (2) prior period expenses, on perusal of the appellate order, we find that the ld. CIT(A) has not called for remand report upon various detailed submissions of the assessee, before deciding the issues, appears to be in violation of Rule 46A of the Income Tax Rules, 1962. Accordingly, we set aside the order of the ld. CIT(A) on the above issues and remit the matter back to the file of the Assessing officer for fresh adjudication after detailed verification of claims of the assessee in accordance with law by affording sufficient opportunities of being heard to the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny had not paid any guarantee commission of any earlier years up to 31.03.2016. The assessee company has now submitted that it has been directed by GoTN to pay the outstanding guarantee commission in 15 EMIs starting from August 2018. The assessee company claims to have started remitting the guarantee commission to GoTN. However, it is noted that events and actions subsequent to 31.03.2016 cannot be considered for deciding the allowability of the claim for AY 2015-16 and AY 2016-17. The guarantee commission debited of Rs.169,64,35,896/- for AY 2015-16 and Rs.211,85,00,000/- for AY 2016-17 shall continue to remain disallowed. The grounds on this issue are rejected. 6.2 On being aggrieved, the assessee is in appeal before the Tribunal f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n accordance with law by affording an opportunity of being heard to the assessee. 7. The next common ground raised in the appeals of the assessee relates to confirmation of disallowance of contribution to recognised provident fund. The assessee has debited contributions to recognised provident fund and claimed. Since the amounts payable to statutory authorities have not been paid, the Assessing Officer disallowed the same and brought to tax, which was confirmed by the ld. CIT(A). We find that the expenses are eligible to be claimed as a revenue expenditure only on the remittance of the same to PFRDI approved CPS fund. In case, the assessee made any remittance and incurred the expenses for the relevant assessment years, the Assessing Offi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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