2021 (10) TMI 176

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.... VIDEO CONFERENCING) ORDER : 1. This appeal has been filed impugning an order dated 13th April 2016 passed by the Income Tax Appellate Tribunal, Mumbai ("ITAT") on the ground that the ITAT erred in confirming the order passed by the Commissioner of Income Tax (Appeals) ("CIT (A"), wherein CIT (A) had deleted the disallowance made under Section 40a(ia) of the Income Tax Act, 1961 ("the said Act")....

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....ly explained that the provisions were made in respect of expenses actually incurred during the year but the bills / invoices of which remained to be received from the parties during the year. The CIT(A) held that in view of that position the Assessing Officer's findings does not appear to be correct that the provisions were made on estimate basis and the said provisions were not pertaining to expe....

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....e basis only. The CIT(A) also observed that the respondent had received bills for such provisions for expenses in subsequent year and deduction has not been claimed in the subsequent year. The CIT(A) has also held that since only a provision was made in respect of expenses pertaining to the year under consideration, the bills of which were not received during the year, there was no requirement of ....

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....and hence there is no loss to revenue. The ITAT refused to interfere. 5. We have considered the facts and circumstances of the case and the orders passed by CIT(A) as well as ITAT which is impugned in this appeal. In our view the CIT(A) was correct in deleting the disallowance made under Section 40a(ia) of the Act and the view of CIT (A) that respondent could not have deducted TDS on provisions m....