9911796707
TMI Blog2025 (1) TMI 873X X X X Extracts X X X X X X X X Extracts X X X X ..... is is an appeal by the assessee, against order dated 30.09.2024, passed by National Faceless Assessment Centre ('NFAC' for short), New Delhi for the assessment year (A.Y.) 2014-15. 2. The grounds raised by the assessee, pertain to the validity of the jurisdiction exercised u/s. 154 of the Income Tax Act, 1961 ('the Act' for short) as well as the merits of the disallowance of expenses, amounting t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat upon revisiting the schedule of cost of flats sold, it was noticed that an amount of Rs. 2,06,50,000/- was claimed towards provision for expenses as per note 20(d) of the Audit Report. According to the A.O., since the provision of expenses is an unascertained liability, it is not allowable. Thus, in terms with the notice issued u/s. 154 of the Act, the A.O. ultimately passed an order u/s. 154 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aragraph of the order passed u/s. 154 of the Act, the A.O. has concluded that allowance of the expenses has resulted in under assessment, whereas, the A.O. has ultimately proceeded u/s. 154 of the Act. Thus, there is an inherent contradiction in the approach and reasoning of the A.O. The jurisdictions u/s. 147 and 154 of the Act are distinct and separate. Therefore, the A.O. once having come to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idea about the quantum of the expenditure, which was pertaining to the current FY as the bills were received before finalization of the accounts, the appellant made a provision for those expenditures. Therefore, these provisions were made not on estimate basis but were made on the basis of actual estimation of the liability. Hence, this provision is in the nature of contingent liability. 8. As c ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
