9911796707
TMI Blog2023 (8) TMI 1192X X X X Extracts X X X X X X X X Extracts X X X X ..... ng expenditure on ascertained liability, also upheld by ITAT - HELD THAT:- There is no grievance by the Revenue so far as the design aspect is concerned. With regard to the provision for expenses towards construction of roads and other civil works, the contention urged on behalf of the Revenue is that AO has not correctly examined the factual matrix. As right in his submission that AO in his order has extracted a copy of the communication between the Assessee and the department, which shows that the Assessee had enclosed technical documents, costs and computation for arriving at a provision for the respective years. This has been noted by the ITAT the impugned order. In addition, ITAT has recorded that AO has noted the details of expendi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing authority in respect of future expenses claimed as deduction by relying on the judgment passed by Hon'ble Apex Court in case of Calcutta Co. Ltd v/s CIT and another case namely, BEML Ltd (Reported in 245 ITR page 428) when the facts in the present case are not identical. 2. Whether on the facts and in the circumstances of the case, the Tribunal is right in law in setting aside the disallowance made by assessing authority in respect of future expenses claimed as deduction by erroneously holding that provision for future expenses in the case of the assessee is an allowable expenses ignoring the fact that the provision claimed was not on the basis of past event, quantification of the same was not substantiated before assessing a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same on the ground that the provision was not contingent one, but based on the matching expenditure on ascertained liability. CIT(A) s order has been upheld by the ITAT by dismissing the Revenue s Appeals. 5. Shri.Dilip submitted that so far as the design aspect is concerned, the provision made by the Assessee will have to be allowed. But so far as the provision made towards construction of roads, etc., requires examination of actual expenditure by the AO. It is submitted that in similar circumstances for AY 2013-14, ITAT has remanded the matter to AO to examine the factual matrix. Accordingly, he prayed for allowing these appeals and to remand the matter to the AO for reconsideration. 6. Shri.Shankar for the Assessee submitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee had enclosed technical documents, costs and computation for arriving at a provision for the respective years. This has been noted by the ITAT in para 12 of the impugned order. In addition, ITAT has recorded that AO has noted the details of expenditure in his order and the same has been extracted in ITAT s order also. 10. It was urged on behalf of the Revenue that for AY 2013-14 the matter was remanded to the AO. There is no parity insofar as an order of remand is concerned. It is based on the facts of each case. Further, even for the said AY 2013-14, after remand, AO has accepted the provision made by the Assessee. For the subsequent years, namely AY 2014-15 no disallowance has been made. There is no dispute with regard to the fact th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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