2018 (10) TMI 2052

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....income for AY 2012-13 on 29/09/2012 declaring total loss of Rs. 68,57,61,784/ -. Later on, the assessee filed two revised returns on 30/03/2013 and 11/10/2013 declaring total loss of Rs. 68,58,81,648/- and Rs. 68,55,44,263/ -. Subsequently, the case was selected for scrutiny and notices u/s 143(2) and 142(1) of the Income-tax Act, 1961 (in short 'the Act') were issued to the assessee. In response to the said notices, the AR of the assessee failed the required information as called for. 2.1 On perusal of schedule 1 (operating expenses), schedules forming part of profit & loss account, the AO noticed that an amount of Rs. 5,90,50,000/- was debited towards periodic maintenance. When the AO asked to furnish the details of periodic ma....

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.... by the assessee for period maintenance of Rs. 5,90,50,000/- debited to the profit and loss account. 2.3 The AO also disallowed an amount of Rs. 2,53,224/-, u/s 36(1)(va) r.w.s. 2(24(x), which was paid by the assessee towards employee contribution of PF on the ground that the same was paid belatedly i.e. after the due date prescribed in the PF Act. 3. Aggrieved by the order of AO, the assessee preferred an appeal before the CIT(A), who confirmed the order of AO observing that despite sufficient opportunities provided, neither the assessee nor AR furnished any evidence during appellate proceeding also rebutting the conclusions drawn by the AO. 4. Aggrieved by the order of CIT(A), the assessee is in appeal before us against the disal....

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....he assessee was disallowed by the AO on the ground that no expenditure was incurred during the year under consideration, therefore, such provision cannot be allowed. In the case of Ashok Buildcon Ltd. (supra), the Pune Bench of ITAT held that "it is not in dispute that the assessee is executing fixed price contract which means that the contractor has agreed to a fixed contract price or rate in some cases subject to cost escalation prices. As per AS-7, the assessee is entitled to make provision for foreseeable losses." In the case of Om Metals & Minerals (P) Ltd. (supra), the Hon'ble High Court of Rajasthan upheld the findings of the Tribunal that assessee made provision of supplies for possible loss due to deduction made by Govt for not....