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of <h1>Tribunal directs fresh examinations on various disallowances & exemptions, upholds certain decisions.</h1> The Tribunal directed a fresh examination by the assessing officer for the disallowance of prior period expenses. The matter of disallowance u/s 40(a)(ia) ... - Issues Involved:1. Disallowance of prior period expenses.2. Disallowance u/s 40(a)(ia).3. Disallowance of bad debt claim.4. Disallowance of provision for wage arrears.5. Interest estimated on 'substandard' status loans.6. Disallowance of exemption claimed u/s 10(23G).7. Disallowance made u/s 14A.8. Disallowance made u/s 40A(9).9. Disallowance of claim of broken period interest.10. Ad hoc disallowance from '˜sundry expenses'.11. Addition of Excess provision for bad and doubtful debts written back.Summary:1. Disallowance of prior period expenses:The issue of Rs.15,81,931/- as prior period expenses was contested. The assessee's claim that these expenses arose during the current year was contradicted by the statutory auditors' certification. The Tribunal directed a fresh examination by the assessing officer (AO).2. Disallowance u/s 40(a)(ia):The assessee adjusted excess TDS payment against future liabilities, which the AO disallowed. The Tribunal found the CBDT's letter did not fully support the assessee's adjustment and remitted the matter back to the AO for reconsideration.3. Disallowance of bad debt claim:The AO disallowed Rs.62,34,95,370/- for bad debts, questioning compliance with sec. 36(1)(vii) and 36(2)(v). The Tribunal noted contradictions in the assessee's explanations and remitted the issue back to the AO for fresh examination.4. Disallowance of provision for wage arrears:The AO disallowed Rs.50 crores for wage arrears as the agreement and payment occurred in the succeeding year. The Tribunal, considering the changed scenario due to reassessment, remitted the issue back to Ld CIT(A) for fresh adjudication.5. Interest estimated on 'substandard' status loans:The AO estimated Rs.18.21 crores as interest income on NPAs, which was confirmed by Ld CIT(A). The Tribunal noted the acceptance of the changed accounting method in preceding and succeeding years and remitted the issue back to Ld CIT(A) for fresh examination.6. Disallowance of exemption claimed u/s 10(23G):The AO denied the exemption due to lack of proof that borrowers were approved u/s 10(23G). The Tribunal directed a fresh examination by the AO, considering additional evidences.7. Disallowance made u/s 14A:The AO estimated 5% of exempt income as related expenses, which Ld CIT(A) deleted. The Tribunal, referencing the jurisdictional High Court's decision in Catholic Syrian Bank, remitted the issue back to the AO for fresh examination.8. Disallowance made u/s 40A(9):The Tribunal upheld Ld CIT(A)'s decision favoring the assessee, based on a prior Tribunal decision allowing contributions to a retired employees' medical benefit scheme.9. Disallowance of claim of broken period interest:The Tribunal followed the jurisdictional High Court's decision, allowing the broken period interest as business expenditure.10. Ad hoc disallowance from '˜sundry expenses':The AO made an ad hoc disallowance of Rs.10 crores for lack of details. The Tribunal remitted the issue back to the AO, granting the assessee another opportunity to furnish necessary details.11. Addition of Excess provision for bad and doubtful debts written back:The Tribunal found contradictions in the assessee's explanations and remitted the issue back to the AO for fresh examination.Conclusion:The appeal of the assessee is allowed for statistical purposes, and the revenue's appeal is partly allowed for statistical purposes.
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