Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2011 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (12) TMI 415 - ITAT, AHMEDABADDisallowance as per provisions of section 40A(3) of the Act - cash payment exceeded the limit prescribed - The assessee submitted that the provisions of section 40A(3) are not applicable as payment made in cash was towards electricity bill, telephone bill and Octroi and made to the Government/local authorities – Held that:- Since the tax auditor has also found that amount was inadmissible under section 40A(3) of the Act and the payments were not made to the Government within clause (b) of Rule 6DD and the cash payment exceeding Rs.20,000/- has been made by the assessee without any exceptional circumstances ground of assessee is dismissed. Disallowance of prior period expenses – AO stated that the debit notes produced covered only a part of such expenditure – assessee submitted the additional evidence reflecting prior period expenses – Held that:- in the interest of natural justice and fair play the matter is restored back to the file of AO for fresh adjudication after providing reasonable opportunity of being heard to the assessee. This ground of assessee is allowed for statistical purposes. Disallowance out of Employees' Welfare expenses being amount paid to Shroff Foundation Trust – Held that:- Details of payments made to Shroffs Foundation Trust (copy of the ledger account and copies of invoices received, on sample basis) to substantiate that the payment was made for services availed of the medical centre run by the said trust and was not a donation to the said trust - on submitting additional evidence and in the interest of natural justice and fair play the matter is restored back to the file of AO for fresh adjudication after providing reasonable opportunity of being heard to the assessee - ground of assessee is allowed for statistical purposes. Additional ground of assessee – CIT(A) held that the provisions of section 14A of the Act read with Rule 8D of the Income tax Rules, 1962 are applicable in the facts and circumstances of the case - AO stated that assessee has received dividend/UTI income claiming exemption u/s 10(33) without allocating any expenses against this income - investment in shares, govt. securities, UTI, etc., which are dividend bearing investments - AO disallowed interest on average rate of borrowings u/s 14A - CIT(A), he directed the AO to recompute the disallowance in terms of section 14A read with rule 8D – Appeal by both assessee and revenue – Held that:- Rule 8D of Income tax Rules is applicable w.e.f. Asst. Year 2008-09, the ld. CIT(A)'s order is not sustainable in law as the asst. year under appeal in this case is 2002-03 and the additional evidence of copy of the ledger account and copies of invoices received – appeal of both allowed.
|