2019 (3) TMI 598

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.... that the assessee suspended its business activity from the year 2003. Deduction of Rs. 70,59,534/- was claimed in the year under consideration towards "Prior period expenses" under different heads. The AO made disallowance without assigning any specific reasons in respect of each of these items separately. The ld. CIT(A) partly allowed the same, against which the Revenue has come up in appeal before the Tribunal. 4. We have heard both the sides and perused the relevant material on record. We take up the items of disallowances one by one. 5. First item of disallowance is Rs. 3,10,512/-, being, payment of Provident Fund. The ld. CIT(A) recorded that the deduction of provident fund was admissible on payment basis in terms of section 43B of ....

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....-2006. Since the settlement took place in the year relevant to the assessment year under consideration and the amount was actually paid, we hold that the ld. CIT(A) was justified in treating this expenditure as not a prior period expenses and hence, eligible for deduction. 8. The next amount is disallowance of interest of Rs. 43,93,619/-. M/s. Shirdi Estate, a sister concern of the assessee, paid this sum to Bank of Maharashtra on 23-05- 2006 on behalf of the assessee. This led the ld. CIT(A) to hold that the amount was to be allowed as deduction on payment basis u/s.43B. Again, we are unable to find any infirmity in the impugned order on this score. The same is, therefore, countenanced. 9. The last component of the overall disallowance i....