2014 (12) TMI 1357

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....essing officer completed the assessment by making various types of additions. The appeal filed by the assessee was partly allowed by the Ld CIT(A) and hence both the parties have filed these appeals before us on the points decided against each of them. 3. We shall first take up the appeal filed by the assessee. The first issue relates to the Disallowance of Lease Equalization Reserve. The assessing officer disallowed the claim of lease equalization reserve on the reasoning that it is not a prescribed expenditure u/s 30 to 37 of the Act. The ld CIT(A) also confirmed the same. Before us, the Ld A.R submitted that identical issue has arisen before the Tribunal and the ITAT has restored the matter back to the file of the assessing officer wi....

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....ing as "unascertained liability". The Ld A.R submitted that it was a diminution in the value of assets and hence the same cannot be considered as unascertained liability. However, we notice that the Finance Act 2009 has made amendment in sec. 115JB of the Act with retrospective effect from 1.4.2001 by inserting the following item to be added to the book profit:- "(i) the amount or amounts set aside as provision for diminution in the value of any asset." Hence, the provision for non-performing assets", being a provision for diminution in the value of asset, the same is required to be added to the book profits. Accordingly, we confirm the order of Ld CIT(A) on this issue. 6. The next issue relates to the addition of "Provision for di....

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....isallowance made by the AO has been deleted by the Ld CIT(A). The Ld A.R submitted that this issue is now covered by the decision of Hon'ble Supreme Court in the case of CIT Vs. United Glass Mfg. Co. Ltd (Civil Appeal No.6447 of 2012 dated Sep. 12, 2012.). We notice that the Hon'ble Supreme Court has held that the club membership fees paid for employees is allowable u/s 37 of the Act. Hence, we are of the view this issue requires fresh examination in the light of decision rendered by Hon'ble Supreme Court in the case cited above, since the details of club expenditure are not available on record. Accordingly, we set aside the order of Ld CIT(A) on this issue and restore the same to the file of the AO for fresh consideration. 9. Next issue....