AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2016 (9) TMI 108
X X X X Extracts X X X X
X X X X Extracts X X X X
....a benefit of enduring nature. 3. That the Id. CIT(A) has erred in law as well as on the facts and circumstances of the case in deleting the addition of Rs. 90,400/- made in respect of collection of Benevolent fund u/s 2(24)(x) of the I.T. Act not deposited in bank. 4. That the Id. CIT(A) has erred in law as well as on the facts and circumstances of the case in restricting the entertainment expenditure of Rs. 37,500/- out of total disallowance of Rs. 1,47,341/- made by the A.O. 5. That the Id. CIT(A) has erred in law as well as on the facts and circumstances of the case in deleting the addition/disallowance of Rs. 3,41,550/- made in respect of guest house expenses. 6. That the Id. CIT(A) has erred in law as well as on the facts and circumstances of the case in deleting the addition of Rs. 2,35,000/- made on account of payment of club. 7. That the Id.CIT(A) has erred in law as well as on the facts and circumstances of the case in restricting the vehicle expenses to Rs. 1,20,000/- out of total disallowance of Rs. 2,00,000/-. 8. That the Id. CIT(A) has erred in law as well as on the facts and circumstances of the case in directing t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....disallowance of Rs. 1,20,000/- out of the vehicle expenses. 8. The Ld. Commissioner of Income tax (Appeals) has erred in fact and in law in confirming disallowance of Rs. 21,96,755/- out of the interest payment. 9. The Ld. Commissioner of Income tax (Appeals) has erred in fact and in law in confirming disallowance of Rs. 3,45,600/- out of interest expenses. 10. The Ld. Commissioner of Income tax (Appeals) has erred in fact and in law in confirming addition of Rs. 82,67,790/- u/s 40A(3). He has further erred in not considering the applicability of Rule 6DD(j) as was existing till 25-07-1995. 11. The Ld. Commissioner of Income tax (Appeals) has erred in fact and in law in confirming disallowance of Rs. 1,50,000/- out of telephone expenses. 12. The Ld. Commissioner of Income tax (Appeals) has erred in fact and in law in not allowing the claim of prior period expenses of Rs. 9,60,175/-. 13. The Ld. Commissioner of Income tax (Appeals) has erred in fact and in law in confirming the addition of Rs. 5,33,24,729/- on account of premium receipt on sale of liquid chlorine. 14. The Ld. Commissioner of Income tax (Appeals) has erre....
X X X X Extracts X X X X
X X X X Extracts X X X X
....wed the claim of expenditure at Rs. 12,23,138/- (Rs.52,99,623 - Rs. 32,76,485 - Rs. 8,00,000) & disallowed the balance amount of Rs. 40,76,485/-. 4. Being aggrieved by the order of the Assessing Officer, the assessee carried the matter before the ld CIT(A), who had deleted the disallowance of Rs. 40,76,485/- by giving the following findings:- "I have perused the assessment order as well as submission of the assessee. The assessee has shown insurance claim of Rs. 32,76,485/- and realization from the sale of scrap of damaged turbo charger on receipt basis in F.Y. 97-98 relevant to A.Y. 98-99. Therefore, this addition is not justified. Accordingly, the addition made at Rs. 40,76,485/- is deleted." 5. Now the revenue is in appeal before us. The ld CIT DR has vehemently supported the order of the lower authorities. 6. At the outset, the ld AR of the assessee has submitted that there is no dispute as to the fact that the expenditure on spare part of the DG set is allowable as revenue expenditure. During the year, the assessee incurred expenditure on such spare part at Rs. 52,99,623/-. Hence, the entire expenditure is allowable during the year. The amount of insurance cl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....arty is dated 26.07.1995 whereas the order is dated 25.12.1995. He accordingly, disallowed the expenditure of Rs. 4,40,000/-. 9. Being aggrieved by the order of the Assessing Officer, the assessee carried the matter before the ld CIT(A), who had deleted the disallowance by holding that the expenditure was incurred on the environmental impact study for mercury MCP plant wholly and exclusively for the business purposes as it was a continuous process of the company to follow the environmental policy. Accordingly, the assessee company took the technical advice and incurred the expenditure as revenue and it is not for enduring benefit. 10. Now the revenue is in appeal before us. The ld CIT DR has vehemently supported the order of the lower authorities. 11. At the outset, the ld AR of the assessee has submitted that the assessee is engaged in the business of manufacturing of liquid chlorine & caustic soda flakes. It is already producing & manufacturing the goods. Any study undertaken for converting the existing plant into a better technological plant in an existing business is a revenue expenditure & not a capital expenditure. It may be noted that though the payment is made to t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d of the revenue's appeal is against deleting the addition of Rs. 90,400/- made in respect of collection of benevolent fund u/s 2(24)(x) of the I.T. Act not deposited in the bank. The ld Assessing Officer observed that a benevolent fund was constituted for the welfare of employees & contribution was being made by the employees & the assessee. The assessee created a liability of Rs. 90,400/- towards its contribution to this fund. The AO disallowed the assessee's claim for the reason that the sum is not deposited in the bank and it will be allowed in the year in which the same is deposited in the bank. 14. Being aggrieved by the order of the Assessing Officer, the assessee carried the matter before the ld CIT(A), who had deleted the addition of Rs. 90,400/- by holding that the assessee company has paid the sum on 31.08.1996 i.e. before the due date of filing the return and the evidence for payment has been produced by the assessee. 15. Now the revenue is in appeal before us. The ld CIT DR has vehemently supported the order of the ld lower authorities. 16. At the outset, the ld AR of the assessee has submitted that as per AS-29, "A liability is a present obligation of the ent....
X X X X Extracts X X X X
X X X X Extracts X X X X
....see carried the matter before the ld CIT(A), who had deleted the disallowance of Rs. 1,09,841/- by holding that the expenditure incurred on technical persons called for attending the repairs of faults in the appellants plant cannot be considered as entertainment expenditure. However, he confirmed the disallowance of Rs. 37,500/- by upholding the action of the AO in assuming that an amount of Rs. 75,000/- out of expenditure on employees welfare and canteen expenses are of entertainment in nature. 20. Now the revenue is in appeal before us. The ld CIT DR has vehemently supported the order of the lower authorities. 21. At the outset, the ld AR of the assessee has submitted that the term "entertainment", in the context of the IT Act, on its true construction and meaning, would include the acts or practice of receiving and entertaining strangers and friends in a friendly, generous and liberal way. These acts may consist of providing, inter alia, a formal or elegant meal, a banquet and being hospitable in providing for the wants of a guest in a liberal and generous manner. If the act of entertaining is on a lavish and a grand scale involving wasteful expenditure, it would, no doubt....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rial available on the record. The amount of Rs. 2,19,682/- has been incurred on boarding and lodging of Engineers who have been called upon to carry out repair of faults in the appellant's plant. Further Rs. 75,000/- has been estimated by the AO towards entertainment expenditure which has been incurred on expenses of tea, coffee, cold drinks etc. for the visitors who have visited the office and factory premises of the assessee. In our view these are routine business expenditure which has been incurred to provide basic hospitality to the technicians and guests who have visited the office and factory premises. Further the decisions of the Hon'ble Rajasthan High Court in case of Premier Vegetable Products, Associated Stone Industries and Rajasthan Cotton Mills (supra) support the case of the assessee. In light of above, we delete the disallowance of entertainment expenditure of Rs. 1,47,341/- made by the AO. In the result this ground of the revenue is dismissed and the ground of the assessee is allowed. 23. The 5th ground of the revenue's appeal is against deleting the addition/disallowance of Rs. 3,41,550/- made in respect of guest house expenses. The AO from the perusal of detail....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rities. At the outset, the ld AR of the assessee has submitted that it may be noted that the payment made to club towards corporate membership is allowable as business expenditure. Apart from the cases relied before the CIT(A), reliance is further placed on the following cases:- (i) CIT Vs. Groz Beckert Asia Ltd. (2013) 351 ITR 196 (P&H)(HC)(FB) (ii) CIT vs. Infosys Technologies Ltd. (2012) 349 ITR 606 (Kar.)(HC) (iii) CIT vs. Modi Xerox Ltd. (2012) 344 ITR 411 (All.) (HC) (iv) CIT Vs. Samtel Colour Ltd. (2010) 326 ITR 425 (Del.) (HC) In view of above, CIT(A) has rightly deleted the disallowance and the ground of the department be dismissed. 26. We have heard the rival contentions of both the parties and perused the material available on the record. The Hon'ble Punjab & Haryana High Court in the case of CIT Vs. Groz Beckert Asia Ltd (supra) has held that corporate membership does not bring in the existence an asset or an advantage for enduring benefit to the business. The corporate membership was obtained for running the business. In light of the said decision and other decisions of the Hon'ble High Court quoted (supra) by the ld. AR, we co....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f Rs. 1,20,000/- confirmed by CIT(A) is otherwise not justified. In view of above, the disallowance confirmed by CIT(A) be deleted by dismissing the ground of the department. 28. We have heard the rival contentions of both the parties and perused the material available on the record. The vehicle expenses have been disallowed on two accounts. Firstly on a/c of non-business use of the expenses and secondly, on a/c of provisions of Rs. 1,20,000. It is a settled position in law that in case of corporate entities, no disallowance can be made for personal use as corporate entities are distinct from directors and any payments/expenditure incurred for Directors are governed by their terms of appointment. In the instant case, therefore no disallowance can be made holding that expenditure has been incurred for the personal purposes. Secondly, the liability for Rs. 1,20,000/- has crystallized during the year and following the mercantile system of accounting, the same cannot be disallowed. In the result, we delete the disallowance Rs. 1,20,000/- towards vehicle disallowance made by the AO. In the result, the ground of the revenue is dismissed and the ground of the assessee is allowed. 29....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the same. Hence, the AO be specifically be directed to exclude this addition while giving the effect to the Appellate order and to consider the addition as per law as an when the appeal under the Excise law is finally decided. As far as allowability of excise duty of Rs. 60 lacs deposited by assessee before due date of filing of return u/s 43B is concerned, there is no error in the direction given by CIT(A) and therefore his order be upheld on this issue. In view of above, the addition confirmed by CIT(A) be deleted. 32. We have heard the rival contentions of both the parties and perused the material available on the record. The ld. AR has confirmed that the matter before CESTAT is still pending for adjudication and he has given an assurance that as soon as the order is pronounced by CESTAT and a copy is made available to the assessee, the assessee shall forthwith share a copy of the CESTAT order with the AO without any undue delay. In light of that, we confirm the order of the ld. CIT(A) and set-aside the matter to the file of the AO to decide the sameafresh as per law after taking into consideration the decision of CESTAT. Further we do not see any infirmity in the order of t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rival contentions of both the parties and perused the material available on the record. The appellant has submitted that as against Excise Duty of Rs. 3,64,438/- in respect of closing stock of raw material, the appellant had a MODVAT credit available in its books of accounts amounting to Rs. 2,98,099/- and further the balance amount of the Excise duty has been paid before the due date of filing of the return. The AO is accordingly directed to verify the said claim of the assessee and where the same is found to be in order, allow necessary relief to the assessee. Hence this ground of the revenue is dismissed. 35. Ground No. 10 of the revenue's appeal and ground No. 14 of the assessee's appeal are against restricting the expenses made on account of repair of vehicle to Rs. 3,02,000/- out of total disallowance of Rs. 6,02,000/- and confirming disallowance of Rs. 3,02,000/- out of expenses on repairs of motor car. The ld Assessing Officer observed that during the year assessee has debited Rs. 79.19 lakhs on account of repair & maintenance (others) and Rs. 23.73 lakhs on account of repairs on vehicles. The AO observed that out of total expenses of Rs. 79.19 lacs, details of Rs. 3.02 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s appeal is against deleting the addition of Rs. 10 lacs on account of valuation of closing stock. The AO observed that closing stock has not been valued properly. He therefore made a lump sum addition of Rs. 10 lacs after revoking section 145(2). The Ld. CIT(A) deleted the disallowance by holding that the assessee is regularly following the method of closing stock and there is no deviation in valuation method during the year, thus, rejection of books of accounts u/s 145(2) is not justified. The CIT DR has supported the order of the lower authorities. The ld AR of the assessee has submitted that in absence of any specific defect in the books of account or for that matter in the valuation of closing stock the lump sum addition of Rs. 10 lacs is uncalled for. The Hon'ble ITAT Allahabad Bench in case of DCIT Vs. Subhash Chand Agarwal 58 SOT 122 has held that when Assessing Officer failed to point out any defect in method of accounting or any inherent defect in books of account maintained by assessee, invoking section 145 for rejecting books of account is unsustainable. Without prejudice to above, it is to submit that that closing stock of one year becomes the opening stock of th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssessee is regularly following the consistent basis for the valuation of its closing stock and there is no deviation in the valuation method during the year. Further the ld. AR has submitted that for subsequent A.Y 1997-98 the AO has accepted the closing stock declared by the assessee for the year under consideration as opening stock for that year and also accepted the closing stock declared in that year. Further it is noted that there is no change in the rate of tax for the year under consideration and the subsequent assessment year, hence following the decision of Hon'ble Supreme Court in the case of Excel Industries Ltd. (supra) and decision of Hon'ble Punjab & Haryana High Court Satish Estate Pvt. Ltd (supra), we hereby delete the addition of Rs. 10 lacs on account of valuation of closing stock. 39. Now we will take up the grounds in the assessee's appeal other than the common grounds. The 1st ground of the assessee's appeal is against confirming the disallowance of Rs. 3,01,833/- out of Power & Fuel Expenses. The ld AO observed that assessee paid the amount of Rs. 3,01,833/- to RSEB towards penalty. No justification was given by the assessee for its allowability. He therefo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....m of contractual relationship between the assessee and the RSEB and it is clearly in the nature of contractual payment rather than infringement of any law of the land. In light of that, we delete the disallowance of Rs. 3,01,883/- paid to RSEB. 41. The 3rd ground of the assessee's appeal is against confirming the disallowance of Rs. 19,00,000/- on adhoc basis out of repairs and maintenance expenses by considering the same as incurred on repairs of the guest house building. The ld Assessing Officer has observed that the assessee maintained a guest house at Alwar & Head office at Delhi. The total expenditure on guest house including repair & maintenance expenses of Rs. 15,66,484/-. The same has been disallowed u/s 37(4) in the computation of total income. The ld AO on verification of details of Delhi office observed that building repair & maintenance expenses includes expenditure incurred on guest house at 15 Friends Colony, New Delhi. He estimated such expenses at Rs. 19 lacs considering that in A.Y. 95-96, such expenses estimated at Rs. 17 lacs has been accepted by CIT(A) & disallowed the same. The Ld. CIT(A) confirmed the disallowance by upholding the findings of the AO cons....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e disallowance by upholding the findings of the AO. Name of Person Place Amount Purpose Reasons for disallowance by AO Sh. DK Modi Sweden 2,03,781/- Discussion with foreign collaborator for DG Set Power is major raw material & installation of DG set is very much desired hence expenditure for acquiring capital asset is capital expenditure Sh. Ashok Kumar Sweden, France & Switzerland 1,61,253/- Exploring possibility of purchasing second hand DG Set & Export matter 2/3 disallowed since visit to Sweden & France was for acquiring capital asset Sh. Ashok Kumar Geneva, London & Chesterfield 2,33,587/- Discussion regarding Euro issue & foreign currency bond, export, expansion of plant & second hand storage tank 3/4 of expenditure disallowed since purpose relating to Euro issue, expenses on business & purchase of machinery relates to capital outlay DK Modi UK, USA, Switzerland & Dubai 1,92,954/- Business & Export promotion 50% disallowed for want of necessary details regarding a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....g Expenses be directed to be deleted. The ld CIT DR has supported the order of the lower authorities. 44. We have heard the rival contentions of both the parties and perused the material available on the record. On perusal of the records especially the purpose of the foreign visits given by the assessee as well as the reasons for disallowance given by the AO, it is noted that the disallowance has been made primarily on account of the fact that the foreign visits have been undertaken and the corresponding expenditure have been incurred for the purpose of acquiring the capital assets and hence the same has been treated by the AO as capital expenditure. The ld. AR has submitted that there is no dispute that the foreign travel was undertaken in connection with acquisition of capital assets besides other reasons such as attending conference etc. At the same time the ld. AR submitted that no new capital assets has been purchased or acquired by the assessee. The decision of Hon'ble Bombay High Court in case of Bralco Metal Industries Pvt. Ltd.(supra) was brought to the notice of Bench in support of the contention that the expenditure on foreign travel of Managing Director to examine....
X X X X Extracts X X X X
X X X X Extracts X X X X
....thing much to the public coffers. In view of above, the addition confirmed by CIT(A) be deleted. At the outset, the ld CIT DR has supported the order of the lower authorities. 46. We have heard the rival contentions of both the parties and perused the material available on the record. It is not in dispute that the assessee has incurred an amount of Rs. 1,04,108/- towards the cost of registration including the surveyance visit paid to National Quality assurance Ltd. Given that there is no change in the rate of tax for the year under consideration and the subsequent year, there is no loss which is caused to the revenue by virtue of assessee claiming the said expenditure based on the invoice raised during the year as against the stand of the revenue that the same should be allowed in the subsequent assessment year. Hence following decision of Hon'ble Supreme Court in the case of Excel Industries ltd. (supra), this ground is allowed. 47. The 6th ground of the assessee's appeal is against confirming disallowance of Rs. 2 lacs out of publicity expenses. The AO observed that voucher of Rs. 1 lacs for amount paid to Equestrian Federation of India for sponsorship is not filed. Furt....
X X X X Extracts X X X X
X X X X Extracts X X X X
....pretty old. Given that the genuineness of the expenditure has not been doubted and the payments has been made by cheque, we delete the disallowance of Rs. 2 lacs out of the publicity expenses. 49. The 8th ground of the assessee's appeal is against confirming disallowance of Rs. 21,96,755/- out of interest payment. The AO observed that assessee has borrowed the funds on interest but the same has been advanced to group concern at lower rate or at Nil Rate whereas interest has been charged from others @18% to 26.5%. It is further observed that inter corporate deposits has been raised & the same is invested in Fixed Deposits for obtaining Bank guarantee for group Concern. Accordingly, he made disallowance of interest of Rs. 21,96,755/- as under:- Name of the Company Amount (in lacs) Date Differential Interest Disallowable Amount M/s Annapurna Cement Ltd. 12.58 17.04.95 18% 2,17,005/- M/s Transitional Travel Ltd. 11.50 29.04.95 6% (18-12) 63,250/- Transitional Securities Ltd. 26.00 21.12.95 3% (18-15) 22,750/- MACL Securities & Finance Ltd. 25.00 25.12.95 3% (18-15)....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t has increased to Rs. 9.84 crores as against 6.06 crores last year and credit of interest has increased to 0.014 crores. As per the AO, the increase in interest liability is on account of advances given at concessional rate of interest or utilizing the funds for taking the FDR for revival of Modi Cement Ltd. This is evident from the facts that total of secured and unsecured loans during the year are Rs. 72.01 crores as against Rs. 63.79 crores last year. As against this, the assessee claimed that this amount has been advanced from the share capital and reserves and surplus account. Regarding the assessee's contention, ld CIT(A) has given his finding stating that loans and advances given by the assessee has no bearing to the share capital of Rs. 29.53 crores which was raised some 17 years back as the same has already been eroded given that the assessee has become a sick company. Ld CIT(A) has further held that the necessary nexus has been established between the borrowed funds and the amount advances to the sister concern and the same findings could not been controverted by the assessee. Further, the ld. AO has submitted that the assessee had advanced funds as a measure of commerci....
X X X X Extracts X X X X
X X X X Extracts X X X X
....age of M/s Modi Cement which is one of the group companies. Similarly, the assessee has supported the other group companies which were also going through the financial and liquidity crunch in order to meet the statutory liabilities and dues towards salary of employees, workers and other expenses and has thus satisfied the test of commercial expediency in respect of other loan and advances as well. In light of that, we delete the disallowance of Rs. 21,96,755/-. In the result, ground of the assessee is allowed. 51. The 9th ground of the assessee's appeal is against confirming disallowance of Rs. 3,45,600/- out of interest expenses. The AO disallowed the interest expenditure on the ground that borrowed fund has been given for non-business purpose based on his findings in AY 1995-96. The CIT(A) confirmed the disallowance by giving the following findings:- "I have perused the assessment order as well as submission of the assessee, the assessment order for AY 1995-96 as well as CIT(A) order have been verified, it is found that the assessee gave loan Rs. 4.35 lac to GM Modi Hospital and Research Centre and Medical Science and Rs. 14.85 lac given to Modi ARE Limited. The as....
X X X X Extracts X X X X
X X X X Extracts X X X X
....reight & cartage expenses payment is required to be made by drivers on spot and it is not practicable to make payment by crossed cheque. The said Rule 6DD(j) was substituted w.e.f 25/07/1995 and simultaneously the limit was increased to Rs. 20,000/- by Finance Act (No. 2) 1996 w.e.f 01/04/1997. Therefore, effectively Rule 6DD(j) as it was existing has to be construed to be inapplicable from AY 1997-98. The ld. CIT(A) has incorrectly held that assessee's case is not covered under Rule 6DD(j) as while saying so he has considered the substituted Rule 6DD(j) whereas in the assessee's case old Rule 6DD(j) is applicable and assessee's case is squarely covered under old Rule 6DD(j). In view of above the payment of Rs. 4,12,38,973/- made by the assessee to the drivers towards transportation of goods is covered by Rule 6DD(j) and therefore disallowance of Rs. 82,67,790/- made by the AO be deleted. Without prejudice to above, expenditure incurred upto 25.07.95 is Rs. 2,77,99,801/- as mentioned in TAR on which no disallowance u/s 40(A)(3) is justified in view of Rule 6DD(j). Otherwise also where the person to whom payment is made is genuine and cash is paid in exceptional circumstances in bus....
X X X X Extracts X X X X
X X X X Extracts X X X X
....aking into consideration the business expediency of making cash payment, we hereby delete the disallowance of Rs. 82,67,790/- in the hands of the assessee. 55. The 11th ground of the assessee's appeal is against confirming disallowance of Rs. 1,50,000/- out of telephone expenses. The AO observed that it is not possible to extract the information of expenses incurred on the residential phones of Chairman and MD. Considering that an amount of Rs. 1,91,953/- is already considered for disallowance under the head guest house against which Rs. 4 lacs was disallowed in the preceding year, a further disallowance of Rs. 1.50 lacs was made. The ld. CIT(A) confirmed the disallowance by giving the following findings:- "I have perused the assessment order as well as submission of the assessee, such additions were made in AY 1995-96. This matter has been set aside in AY 1995-96 to the AO. Before CIT(A) in order dt. 07.03.2002 the assessee did not press this issue for Rs. 1,05,439/-. Keeping in view of the past history and reasonableness of the disallowances, the addition of Rs. 1.5 lac for non business purpose is justified." The ld AR of the assessee has submitted that as expla....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f the payment. Further the rate of tax being same, it does not matter whether it is allowed as deduction in the year in which the expenditure is booked or in earlier year. For this reliance is placed on the following cases:- (i) CIT Vs. Excel Industries Ltd. 358 ITR 295 (SC) (ii) Saurashtra Cement & Chemical Industries Ltd. Vs CIT 213 ITR 523 (Guj.) (HC) (iii) Rajasthan State Industrial Development & Inv. Corpn. Ltd. Vs. ACIT (66 & 354/JP/08, dated 30-09-2008 for AY 2004- 05 and 138 & 235/JP/09 for AY 05-06 dated 08-01-2010) (iv) Instrumentation Ltd. V/s IAC (1163/JP/82 Assessment Year 1978-79) dated 28/09/1984 He further submitted that without prejudice to above, in case these prior period expenditures are not allowed in the year under consideration, then the same be directed to be allowed in the AY 1995-96 to which it pertains. Further the assessee has also included in income Rs. 11,86,483/- on account of excess provision written off/ liabilities no longer required. This is more than the claim of prior period expenditure. In view of above, the disallowance confirmed by the CIT(A) be directed to be deleted. At the outset, the ld CIT DR has....