WINTEX MILLS PVT.LTD.,SURAT vs. THE INCOME TAX OFFICER, WARD-4(4), SURAT

ITA 622/AHD/2015Status: DisposedITAT Surat11 January 2019AY 2010-117 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the disallowance of municipal tax and the portion of the cooperative society payment pertaining to earlier years, stating that expenses crystallized in earlier years cannot be allowed in the current year merely by passing a journal entry or a resolution. Interest under sections 234A, 234B, 234C, and 234D was also confirmed as mandatory.

What were the facts?

The assessee claimed deductions for municipal tax and a payment to a cooperative society. The Assessing Officer disallowed these claims as they pertained to earlier assessment years, and the assessee followed the mercantile system of accounting. The CIT(A) upheld these disallowances, except for a portion of the cooperative society payment made during the year.

What were the issues?

Whether expenses pertaining to earlier assessment years, even if paid in the current year, are allowable as deductions when the assessee follows the mercantile system of accounting. Whether interest under sections 234A, 234B, 234C, and 234D is mandatory.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 43B,Section 234A,Section 234B,Section 234C,Section 234D

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

Before: SMT. DIVA SINGH & SHRI O.P.MEENA

Hearing: 11.01.2019

PER O.P.MEENA, AM: This appeal filed by the Assessee is directed against order of 1. learned Commissioner of Income Tax(Appeals)-II, Surat(in short “the CIT (A)”) dated 26.12.2014 pertaining to Assessment Year 2010-11 which in turn has arisen from the orders passed by the ITO, Ward-4(4), Surat(in short “the AO”) dated 20.03.2013 under section 143(3) of Income Tax Act,1961 (in short ‘the Act’).

2.

The gr

The order continues below.

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