Tribunal partially allows appeal, grants various claims, dismisses one ground, order dated 18/05/2022.

The Tribunal partly allowed the appeal, condoning the delay in filing and allowing claims for bonus ex-gratia, professional charges, commission on sale (pending verification), and transport charges. The fifth ground was dismissed. The order was issued on 18/05/2022.

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Issues Involved:
1. Condonation of delay in filing the appeal.
2. Disallowance of prior period expenses: Bonus ex-gratia.
3. Disallowance of prior period expenses: Professional charges.
4. Disallowance of prior period expenses: Commission on sale.
5. Disallowance of prior period expenses: Transport charges.

Issue-wise Detailed Analysis:

1. Condonation of Delay in Filing the Appeal:
The appeal was filed with a delay of 802 days. The delay was attributed to the misplacement of the order by an employee and subsequent issues including the pandemic and medical problems of the Authorized Representative. The Supreme Court's order in Writ Petition No. 3 of 2020 was referenced, which extended the period of limitation due to the pandemic. The Tribunal found that there was a "reasonable and sufficient cause" for the delay, with no malafide intention or culpable negligence. Therefore, the delay was condoned under Section 253(5) of the Income Tax Act, 1961.

2. Disallowance of Prior Period Expenses: Bonus Ex-Gratia:
The assessee claimed a bonus/ex-gratia payment of Rs. 2,66,843/- for the year ending 31.03.2012, which was crystallized and paid in the assessment year 2013-14 due to employee agitation and a subsequent management decision. The Tribunal referenced a similar issue decided in favor of the assessee in ITA No. 754/Mum/2016 for AY 2011-12. The Tribunal held that the liability to make the ex-gratia payment was crystallized during the year under consideration, allowing the claim.

3. Disallowance of Prior Period Expenses: Professional Charges:
The assessee claimed professional charges of Rs. 3,53,934/- paid to a consultant against bills dated 06.08.2012 for services rendered in the period July 2011 to March 2012. The Tribunal held that the liability was crystallized upon receipt of the bills in AY 2013-14, justifying the claim in the current assessment year.

4. Disallowance of Prior Period Expenses: Commission on Sale:
The assessee claimed commission on sale amounting to Rs. 4,16,600/- for sales proceeds received on 04.08.2011. The Tribunal directed the Assessing Officer to verify the payment and allow it, following the CIT(A)'s direction for verification.

5. Disallowance of Prior Period Expenses: Transport Charges:
The assessee claimed transport charges of Rs. 1,43,459/-, which were paid subject to the condition of goods being delivered in good condition as reported by the customer. The Tribunal held that the expenses were crystallized upon receipt of the customer report, allowing the claim in the year under consideration. It was noted that the exercise was revenue-neutral as the taxable income and tax rate remained unaltered across the assessment years.

Conclusion:
The appeal was partly allowed for statistical purposes, with the Tribunal condoning the delay and allowing the claims for bonus ex-gratia, professional charges, commission on sale (subject to verification), and transport charges. The fifth ground was dismissed as infructuous. The order was pronounced on 18/05/2022.

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