CIT v. Bharat Carbon & Ribbon Mfg. Co. (P) Ltd.

The Chennai Port Trust Employees Co-Operative Bank Limited, Chennai vs. DCIT Ncc 12(1), Chennai

In the result the appeal of the assessee is allowed

Bench: Shri A.Mohan Alankamony & Shri Duvvuru Rl Reddy

…relevant to the assessment year 2012-13. While arriving at his decision the Ld.AO relied on the decisions of the Hon’ble Apex Court in the case Haji Vs. CIT reported in 224 ITR 591, Francis Vs. CIT reported in 236 ITR 308 and CIT Vs. Bharat Carbon reported in 239 ITR 505 wherein the Hon’ble Apex Court had laid down the ratio that the disputed liability is allowable as deduction in the year in which the demand notice is issued though it pertains to the earlier year. On appeal, the Ld.CIT(A) confirmed the order of the Ld.AO by agreeing with the view of the Ld.AO. 4. Before us the Ld.AR submitted that though the Re…