Norben Tea and Exports Ltd. v. Dy. CIT (2025) 123 ITR 715 / 175 taxmann.com 237 (Kol.)(Trib.)

S. 37(1): Business expenditure-Prior period expenses-Provision for gratuity already disallowed by assessee-Double disallowance not permissible-Matter restored.[S. 145]

The Tribunal found that the assessee had already disallowed the closing balance of the provision for gratuity in its computation of income. The Assessing Officer again disallowed substantially the same amount as prior period expenditure, resulting in double disallowance. The matter was restored to the Assessing Officer to verify the ledger accounts and delete the duplicate addition after verification. (AY. 2014-15).

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