The Income Tax Appellate Tribunal (ITAT), Mumbai Bench in a relief to the M/s Tata Sky directed the Assessing Officer to delete disallowance under section 40(a)(ia) of the Income Tax Act.
The assessee, M/s. Tata Sky Limited on a limited aspect seeks to recall the order of this Tribunal on one particular issue alone with regard to upholding the disallowance made under section 40(a)(ia) of the Act on year end provision for expenses on the ground that while rendering the decision, the Tribunal had not followed the decision rendered by this Tribunal in the case of Mahindra and Mahindra Ltd for the very same issue which was decided in favour of the assessee.
The respondent authority submitted that the assessee has not submitted the break-up being year end provision made for various expenses.
However, the ITAT found that the entire break-up had been duly submitted by the assessee before the lower authorities the figures mentioned are fairly ascertainable and are not mere adhoc provisions.
Therefore, the coram consisting of M. Balaganesh and Mahavir Singh have no hesitation in directing the AO to delete the disallowance under section 40(a)(ia).
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