The Tribunal held that in the AY 2011-12, the assessee had claimed expenditure in relation to gratuity and leave encashment which had been disallowed in the assessment order. It was this sum, which was written back in the profit and loss account of the relevant year, as these expenses were no longer payable. Since the expense was never allowed as deduction in the year of debit, i. e., AY 2011-12, the corresponding write back also could not be taxed, having regard to the extant provisions of section\u00a041(1)\u00a0of the Act. The Assessing Officer in the remand report having accepted the assessee\u2019s contention, the action of the Commissioner (Appeals) sending the issue to the Assessing Officer for further verification was unwarranted. (AY.\u00a0 2014-15)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Provision for gratuity and leave encashment written back-Expenses not allowed in earlier year-Amount write back cannot be taxed. <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-36028","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-9n6","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/36028","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=36028"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/36028\/revisions"}],"predecessor-version":[{"id":36029,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/36028\/revisions\/36029"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=36028"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=36028"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=36028"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}