2022 (9) TMI 1466

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....2017-18 before it against the order dated 20.12.2017 passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred as 'the Act') by the ld. AO, Additional CIT, Special Range-6, New Delhi (hereinafter referred as the Ld. AO). 2. The brief facts of the case as put up by assessee are that it is a Public Sector Undertaking formed with the sole object of reviving sick textile mills mainly to safeguard the interest of labourers employed by them and also having huge b/d unabsorbed losses of Rs 1,545.08 Crores during the current A.Y. 2015-16. Further it is also not liable to pay taxes as per BIFR mandate. It filed its E- Return as on 29th Sep 2015 declaring total losses of Rs 229.89 Crores. The case was selected for scrutiny & stat....

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..../- being wrong disallowance made by him based on stated case laws. 3. Assessee made detailed submissions for no further Prior Period Expenses disallowance of Rs 2,23,09,000/-as follows:- a. The Assessee has himself disallowed Rs 49,31,02,928/- as per law. b. The Assessee is disallowing Net Prior Period Expenses (Prior Period Expenses- Prior Period Income) since inception 01/04/1968 (Last 45 years). c. The changing from Net to Gross Prior Period Expenses shall have no effect on tax liability over a period as these are self-adjustable. d. These are CURRENT YEAR expenses only but reported as prior period in compliance of Accounting Standards-5 of ICAI & Companies Act 2013 only. This fact was duly proved a....

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....7. In regard to the issue in ground No. 1 it can be observed that the ld CIT(A) has taken into consideration the determination of issue in favour of the Assessee in the previous AYs 2008-09, 2009-10, 2010-11 and 2014-15 from the Tribunal. The Assessee had given a tabulated information with regard to details of interest expenditure which have been reproduced by the ld CIT(A) in para No. 4.2 of its order. 8. The ld DR could not substantiate argument as to why inspite of a suo moto disallowance being made by the Assessee without justifying anything to differ, the AO made a disallowance while the interest expenditure was incurred to earn taxable income only. At the same time the Assessee's own fund as on 31.03.2015 were Rs. 145173.31 and inv....