2025 (9) TMI 1130

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....ppeal in ITA No. 118/AGR/2025 for AY 2016-17, arises out of the order of the JCIT(A)-1, Gurgaon [hereinafter referred to as 'ld. JCIT(A), in short] dated 31.12.2024 against the order of assessment passed u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act') dated 24.12.2018 by the Assessing Officer, ITO, Ward-2(2)(5), Etawah (hereinafter referred to as 'ld. AO'). 2. The ....

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....se of scrutiny assessment proceedings, the assessee was asked to furnish the details of amount of Rs 3,48,918/- shown under the head 'other current provisions'. The assessee furnished the details for the same by stating that the sum of Rs 3,48,918/- represents salary payable as on 31-3-2016, which was duly paid by the assessee company in the next financial year and also produced evidences thereon.....

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....omprehend myself as to how the provisions of section 56 of the Act per se could be made applicable to the impugned transaction. Salary payable as on 31-3-2016 is a genuine business liability arising to the assessee in the course of its business. The assessee is following mercantile system of accounting for computing the profits from the business which is not in dispute before us. While it is so, s....