2015 (6) TMI 1169

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....t metal heavy pressed automobile components, tools & accessories etc.' It had claimed a sum of Rs. 16,65,118/- as prior period expenses. The AO sought to make the impugned disallowance keeping in mind the nature of expenditure in question as well as system of accounting followed in the present case. The assessee pleaded to have debited the impugned prior period expenses relating to the sum of Rs. 14,26,460/- in the case of Jalaram Construction Labour Contractor, Rs. 67,348/- in respect of Bharat Engineer Works Labour Contractor & Rs. 1,71,310/- in respect of Jaybharat Enggr. Labour Contractor. It is stated that these three parties had been supplying casual labour. There was a dispute in March, 2002. They ran away. The assessee claimed to ....

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....ruction labour contractor 1426460 (b) Bharat engineers works labour contractor 67348 (c) Jay Bharat Engineering labour contractor  171310   1665118 The company is having a contract with above mentioned contractors to supply casual workers. The facts of the case of contractors are as under; The above contractors were supplying casual labour to the company. In the month of March 2002 the company had a dispute with the contractors & hence they have run away & hence the company had to make payment to contractors' workers, contractor wise, the details of which are mentioned in item (22b) of our tax audit report. The contractor had not made payment to its workers working in our company. So the company had no alternative b....

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....alton Sugar Works 182 ITR 622 (Bom,) The Assessing Officer has not doubt about the genuineness of expenditure incurred by the company and the same were not claimed by the company as expenditure in earlier years. The Board of Directors passed the resolution to debit the same to Profit & Loss Account in the Financial Year 2003-04. Copy of Board Resolution is attached herewith. The above attachments are attached in Annexure 1 of our Paper Book Page No. 19 and Page No. 37. With regard to the above facts it is clear that the dispute were settled in Financial Year 2003-04 and hence this disallowance of deduction being disregard of facts available on records and therefore it is prayed to be allowed." 2.2 AO's comments in report dt. 5....