2019 (3) TMI 680

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....der of the revenue is bad in law and on facts." 3. The brief facts of the case show that assessee is a company engaged in the business of aviation. Original assessment under section 143 (3) of the income tax act was passed on 29/12/2004 at INR 954797190. The above return was further revised at a total income of Rs. 881160873 on 14/3/2005. Subsequently, reassessment under section 147 read with section 143 (3) of the act was also made on 31st 12 2007 determining the total income at Rs. 993360873. The order was again revised under section 250 of the income tax act on 17/2/2009 determining total income of the assessee at Rs. 881160873. Consequently the original return assessed on 4/3/2005 was reinstated. 4. Subsequently, It was noted that the....

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.... assessee has already paid taxes on excess billing as income in earlier years. It was further stated that the arrears of lease rent paid to Airport authority of India which was already earlier provided at a reduced rate i.e. old rates which is now revised and therefore according to the arbitration award the earlier years lease rent has accrued during the year and same has been provided as an expenditure as prior period expenditure. The learned assessing officer rejected the explanation of the assessee and held that the sum of INR 1 2905278/- is a prior period expenditure and is not allowable. Therefore, same was disallowed. The assessee preferred an appeal before the learned Commissioner of income tax appeals who confirmed the disallowance ....

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....ental representative submitted that assessee has submitted the above expenditure pertaining to the previous year, which is not allowable in this year and therefore the learned assessing officer has correctly disallowed the above sum. He stated that the excess billing of the customers is pertaining to the earlier years bill is raised by the assessee and therefore adjustment to that bill is allowable only in that year and not in the subsequent year. He further stated that areas in the rent are pertaining to the earlier years and, therefore, same should also be disallowed during the year. 9. We have carefully considered the rival contention and perused the orders of the lower authorities. Claim of the assessee stated to have been though relat....

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....be disallowed as prior period expenditure. To this extent, we reverse the order of the learned CIT - A in Confirming the disallowance of the above sum. 12. The further sum of INR 16403/- was claimed as an depreciation of the earlier years, which is as such not allowable, Therefore, the order of the learned CIT - A does not have any infirmity in confirming the above disallowance. 13. With respect to the disallowance of INR 2465237/- pertaining to the earlier years, The assessee could submit before us that the above sum includes a sum of INR 794439/- with respect to the items like travelling allowance or daily allowance claim of the employees of the Indian oil Corp such as fuel bills of earlier years at the attachment/bases like Northeast L....