TaxTMI 
TaxTMI 
2017 (9) TMI 804
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....- to the total income. 2) The learned Principal Commissioner of Income Tax erred in holding that a sum of Rs. 26,08,116/- is merely a provision for rent and, therefore, it is disallowable. 3) The learned Principal Commissioner of Income Tax erred in holding that a sum of Rs. 75,46,339/- is merely a provision for electricity expenses and no liability has accrued during the previous year relevant to A.Y. 2012-13 and therefore, it is disallowable. 4) The learned Principal Commissioner of Income Tax erred in holding that a sum of Rs. 21,54,654/- being office maintenance is disallowable. 5) The learned Principal Commissioner of Income Tax erred in holding that no liability has accrued in respect of provision f....
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....st on fixed deposit has been credited to the extent of Rs. 1,03,87,939/- whereas interest accrued and not due at Rs. 28,80,806/- does not find place on the credit side of the P & L A/c. This amount of interest accrued but not due has been reflected under the head 'other assets' in column No. 16 on the asset side of balance sheet. Since, the assessee is maintaining the mercantile system accounting, the interest accrued must have credited on the credit side of P & L A/c. There appears to be the mistake which the assessing officer has lost Sight. 4. Ld. CIT also stated that from the details filed regarding the other expenses, the amounts of Rs. 26,08,116/- Rs. 75,46,369/- and Rs. 21,54,654/- have been debited under the head provisio....
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.... Total 2,85,917/- 8. Our attention was invited to page four of the paper book which is audited balance sheet indicating accrued expenses of Rs. 2,18,17,469/-. The break-up of accrued expenses are placed at page 25 of the paper book which indicated accrued expenses payable amounting to Rs. 60,80,813/-. Our attention was also invited to page 26 of the paper book giving break-up of such accrued expenses of Rs. 60,80,813/-, wherein outstanding rent was only Rs. 2,62,945/- as against outstanding rent considered by CIT at Rs. 26,08,116/-. As per the list of accrued expenses, there was no provision for electricity expenses and maintenance expenses. 9. In view of the above, it was vehemently argued by learned AR that CIT has wrongly take....
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....rovision figures in respect of the above-referred expenses, inadvertently, the month end provision numbers got filed. However, vide its letter dated 13/08/2015, assessee had clarified that the provision figures that were submitted during the assessment proceedings (and which were picked by CIT in the revision proceedings) were actually month end provision figures and not the provision figures which were outstanding at the year end. 13. In view of the above, revised figures of provision, in respect of the above-referred expenses, as at the year-end, as appearing in the balance sheet, for the subject AY along with the manner in which they were paid/settled, in the subsequent years are as under: Provision for rent - INR 2,62,....