2018 (5) TMI 37

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....med by Ld. Joint Commissioner of Income Tax Range-22(3), Mumbai [AO] u/s 143(3) of the Income Tax Act, 1961 on 06/03/2013 wherein the income of the assessee has been assessed at Rs. 177.09 Lacs after certain additions as against returned income of Rs. 108.66 Lacs e-filed by the assessee on 14/10/2010. 2.1 Facts in brief are that the assessee being resident firm engaged as builders and developers carried out two projects namely Balaji Residency and Balaji Galaxy during the impugned AY. Both the projects were completed during the year and accordingly the income of the same has been offered on completion method. The solitary issue before us is deduction of certain expenses amounting to Rs. 50 Lacs claimed by the assessee against the project n....

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....e only. 16. Further, there is nothing on record to show that such expenditure pertains to the relevant previous year. The appellant has not submitted any details to show that this amount relates to any obligation, matching which revenue has been recognized. 17. Hon'ble Supreme court in case of Rotork Controls India Pvt.ltd. [314 ITR 62], explained the term "provision". "what is a provision? This is the question which needs to be answered. A provision is a liability which can be measured only by using a substantial degree of estimation. A provision is recognized when: (a) an enterprise has a present obligation as a result of a past event; (b) it is probable that an outflow of resources will be required to settle the obligation; and ....