Cost of unbilled work to be provided for entire year by estimating the same on scientific and rational based on engineering

Last updated: 13 October 2020

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Quick Summary

This Income Tax Appellate Tribunal case concerns the assessment year 2013-14, where the revenue appealed against a decision that deleted a disallowance of over £78 million. This disallowance was related to provisions for future expenses claimed by M/s CEC Soma CICI Joint Venture. The tribunal will review whether the deletion of this disallowance by the CIT(A) was lawful and factually sound.

Court :
ITAT Bangalore

Brief :
Present appeal has been filed by revenue against order dated 01/08/2019 passed by Ld.CIT(A), Koramangala, Bangalore, for assessment year 2013-14 on following grounds of appeal:

Citation :
ITA No.2501/Bang/2019

IN THE INCOME TAX APPELLATE TRIBUNAL
‘B’ BENCH : BANGALORE
BEFORE SHRI. B. R. BASKARAN, ACCOUNTANT MEMBER
AND
SMT. BEENA PILLAI, JUDICIAL MEMBER
ITA No.2501/Bang/2019
Assessment Year : 2013 – 14

The Asst. Commissioner of Income Tax,Circle-1(2)(1),Bengaluru. Vs.
APPELLANT

Vs.

M/s CEC Soma CICI Joint Venture,Opp. Gate No.20,Near M Chinnaswamy
Stadium,M.G Road,Bengaluru-560 001.PAN – AAAAC 8081 E
RESPONDENT

Appellant by : Shri V Srinivasan, Advocate
Respondent by : Shri Muzaffar Hussain, CIT (DR)
Date of Hearing : 14-09-2020
Date of Pronouncement : 09-10-2020

ORDER

PER BEENA PILLAI, JUDICIAL MEMBER

Present appeal has been filed by revenue against order dated 01/08/2019 passed by Ld.CIT(A), Koramangala, Bangalore, for assessment year 2013-14 on following grounds of appeal:

“1. The order of the Learned CIT (Appeals), in so far as it is prejudicial to the interest of revenue, is opposed to law and the facts and circumstances of the case.

2. The Ld. CIT (A) erred in deleting the Disallowance of Rs.7,85,14,570/- made by AO towards the provisions for future expenses claimed.

3. For these and such other grounds that may be urged at the time of hearing, it is humbly prayed that the order of the Ld. CIT (A) be reversed and that of the Assessing Officer be restored.

4. The appellant craves leave to add, to alter, to amend or delete any of the grounds that may be urged at the time of hearing of appeal.”

To know more in details find the attachment file

FAQ :

The main issue was the revenue's appeal against the deletion of a significant disallowance (£7,85,14,570) made by the Assessing Officer for provisions for future expenses claimed by the respondent company.

This case relates to the assessment year 2013-14.

The appellant was the Assistant Commissioner of Income Tax, Circle-1(2)(1), Bengaluru, and the respondent was M/s CEC Soma CICI Joint Venture.

The CIT(A) deleted the disallowance of Rs.7,85,14,570/- that the Assessing Officer had made towards the provisions for future expenses claimed by the respondent.