MRS.RITY SANJAY TOSHNIWAL ,MUMBAI vs. ASSISTANT COMMISSIONER OF INCOME TAX 21(3), MUMBAI

Aforesaid appeal by assessee for Assessment Year [AY] 2013-14 contest the order of the Ld. Commissioner of Income-Tax (Appeals)-33 [CIT(A)], Mumbai, Appeal No.CIT(A)-33/Rg.21/94/2016-17 dated 31/05/2018 by raising the following sole ground of appeal:- On the facts and in the circumstances of the case and in law, the learned A.O. erred in not reducing the taxable income by Rs.4,94,48,280/- being the commission expense written back in the Profit & Loss account. The Ld. CIT(A) has upheld the action of the Ld. AO and failed to appreciate the claim of the appellant.

During assessment proceedings, it was noted that the assessee had credited an amount of Rs.494.48 Lacs in the Profit & Loss Account as “Amount no more payable w/back”. It was explained that the same represented provisions made in the Balance Sheet for payment of commission expenses. The said provisions were stated to be made by debiting Profit & Loss Account during various years beginning from AY 2005-06. It was further submitted that the said sum was already been added back / disallowed during assessment proceedings for AYs 2007- 08 to 2010-11 and therefore, the same should be reduced from the income of the impugned AY. However, Ld. AO, relying upon the decision of Hon’ble Apex Court rendered in Goetze India Ltd. 284 ITR 323, opined that the new claim could not be admitted otherwise than by way of filing the revised return of income.

Aggrieved, the assessee contested the same without any success before Ld. CIT(A) vide impugned order dated 31/05/2018 wherein Ld. CIT(A) rejected the assessee’s submissions on the premise that that the assessment for earlier years had not attained finality. Aggrieved, the assessee is in further appeal before us.

The sole plea raised by Ld. AR is that the matter may be remitted back to the file of Ld. AO as done by the Tribunal for earlier AYs so as to enable the lower authorities to take a holistic view in the matter which