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2016 (7) TMI 1267 - AT - Income TaxDisallowance of leave encashment u/s.43B(f) - AO while computing book profit under section 115 JB of the Act, also added the same to the profit of the assessee - Held that:- Such disallowance is in accordance with the provisions of section 43B(f) of the Act. Section 43B(f) of the Act clearly provides that any sum payable by the assessee as employer in lieu of any leave at the credit of his employee shall be allowed in which the sum is actually paid before the due date of filing of the return as per section 139(1) of the Act. Hence this issue is held in favour of the Revenue. However, while determining the book profit under section 115JB of the Act, the provision made for leave encashment has to be allowed as deduction because as per Explanation [I] (c) ascertained liabilities has to be given effect for arriving at the book profit. Therefore the profit & loss arrived after debiting the ascertained liability of the amount payable to the employees cannot be altered by the Revenue to the extent it remains unpaid. Accordingly, this ground raised by the assessee is partly allowed for both the assessment years as indicated herein above. Addition u/s 14A - Held that:- We hereby direct the learned assessing officer to ensure whether the assessee had made investments in its sister/associate company for strategic purpose and out of its interest free funds as clarified by the Chennai bench of the Tribunal in the case of Rane Holdings Ltd. Vs. ACIT [2016 (1) TMI 1100 - ITAT CHENNAI] and if found so delete the disallowance made by invoking the provisions of section 14A of the Act or if otherwise pass appropriate order as per merits and law. Therefore this issue is remitted back to the file of the learned assessing officer for the limited purpose as indicated herein above. With respect to the computation of book profit under section 115JB we hereby direct the learned Assessing Officer to compute the book profit of the assessee without making addition on account of section 14A r.w.r.8D in the case of the assessee as while computing the “Book Profit” of the company under the provisions of section 115JB of the Act; any disallowance made under the normal provisions of the Act also cannot be given effect to for arriving at the “Book Profit” for the purpose of Section 115JB of the Act. See M/s. Beach Minerals Company P.Ltd. Vs. ACIT [2015 (8) TMI 1031 - ITAT CHENNAI] Accordingly, this issue allowed in favour of the assessee TDS u/s 194H - Applicability of Section 40(a)(ia) on credit card commission - Held that:- In the case of the assessee, the assessee is not making the commission payment to the bank but receiving its due after deduction of the commission hence the provisions of section 194H of the Act will not be applicable. See Tata Teleservices Ltd. Versus DCIT [2013 (1) TMI 480 - ITAT BANGALORE ]- Decided in favour of the assessee
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