Historical and empirical data must be examined prior to approving provision of expenditure: ITAT Hyderabad

ACIT Vs Vijay Electricals Ltd. (ITAT Hyderabad) ITAT Hyderabad held that CIT(A) without examining the historical/ empirical data of expenditure incurred by the assessee for rectification / repair of transformers cannot approve the provision thereof. Accordingly, matter remanded back to CIT(A). Facts- Case of the assessee was re-opened by AO on the ground that the assessee has incurred the expenditure of Rs.5,49,96,134/- towards the repair and rectification of transformer and the amount spent/expenditure incurred was adjusted against the provision of earlier years to the tune of Rs.53,08,754/-....