M/S. CAMICERIA APPARELS INDIA PVT. LTD.,CHENNAI vs. ACIT, CHENNAI

This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals) (C) – II, dated 20.11.2013 and pertains to assessment year 2007-08.

The first issue arises for consideration is disallowance of ₹14,75,570/-.

We heard Sh. R. Vijayaraghavan, the Ld.counsel for the assessee and Shri R. Clement Ramesh Kumar, the Ld. Departmental Representative. Admittedly, this expenditure of ₹14,75,570/- was classified by the assessee itself as pre-paid expenses. As rightly observed by the CIT(Appeals), it is a provision for expenditure which is unascertained. Therefore, it cannot be allowed during the year under consideration. Hence, this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed.

The next issue arises for consideration is grant of deduction under Section 10B of the Act.

We heard Sh. R. Vijayaraghavan, the Ld.counsel for the assessee and Shri R. Clement Ramesh Kumar, the Ld. Departmental Representative. The CIT(Appeals) by placing reliance on the judgment of Madras High Court in Shri Nagesh Chundur v. CIT dated 19.08.2013, found that the period of ten years is to be reckoned from the year in which the undertaking started manufacturing of the products. In view of the above, this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed.

In the result, the appeal filed by the assessee is dismissed.