Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (2) TMI 224 - AT - Income TaxDis-allowance u/s 14A of the Act r.w Rule 8D of the Rules Held that:- The decision in Cheminvest Ltd. v. ITO [2009 (8) TMI 126 - ITAT DELHI-B ] followed - if the expenditure is incurred in relation to income which does not form part of total income it has to suffer dis-allowance irrespective of the fact whether any income is earned by the assessee or not Section 14A does not envisage any such exception - Thus, the dis-allowance has to be made u/s. 14A r.w.r. 8D - the assessee has made investments - Some of the investments made by the assessee are short term - Since assessee is paying capital gains tax on short term investments, the provisions of Rule 8D will not apply on them - The Assessing Officer is directed to re-compute dis-allowance u/s. 14A r.w.r. 8D after excluding short term investments Decided partly in favour of Assessee. Dis-allowance u/s 40(a)(ia) of the Act Advisory services provided Royalty to be paid or not Held that:- The payments cannot be termed as 'Royalty' as defined under the provisions of the Act - the term of 'Royalty' as defined in the Act shows that it does not include any information provided in the course of advisory services - payments made to M/s. Fund Quest are not in the nature of 'Royalty' and the services were rendered abroad, no part of income had accrued or arisen in India - The assessee is not liable to deduct tax at source on the payments so made order of the CIT(A) set aside Decided in favour of Assessee. Repairs of lease-hold premises Held that:- The decision in Sundaram BNP Paribas Asset Management Co. Ltd. [2011 (1) TMI 1242 - ITAT CHENNAI] - A perusal of the break up of the expenses which have been disallowed clearly shows that the expenditures are on the interior decorations and creation of the office atmosphere - The expenditure has not resulted in any building coming into existence nor has the existing building been modified or the structure altered - As the existing building has not been altered and there is no change to its structure as a result of the expenditure incurred by the assessee, it cannot be said that the expenditure incurred by the assessee is in the capital field - the expenditure incurred is in the revenue field - the expenditure on the repairs and maintenance in the form of electrical fittings, electrification, cabinet, work station, partition, cupboard, stand etc. are liable to be treated as a revenue expenditure order of the CIT(A) set aside and the AO is directed to grant the assessee the claim of revenue expenditure in regard to the said expenditure Decided in favour of Assessee. Depreciation on UPS Depreciation to be allowed at 15% OR 60% - Held that:- The decision in Haworth (India) P. Ltd. Versus Deputy Commissioner of Income-tax [2013 (8) TMI 421 - ITAT DELHI] followed - UPS is an integral part of the computer when a device is used as part of the computer in its functions, then it would be termed as a computer thus , the assessee is entitled to claim depreciation @ 60% on UPS Decided in favour of Assessee. Difference between TDS and actual tax - Investment management fee Held that:- The assessee should not be taxed twice for the same income or taxed for the income which has not accrued to him - certain reversal entries were made to adjust the excess payments the tax has been paid on such excess payments - The income which has not accrued to the assessee is not liable to be taxed - The error was discovered during audit which was rectified - the addition made is unjustified The decision in COMMISSIONER OF INCOME-TAX Versus SUDHIR SEKHRI [2010 (4) TMI 50 - DELHI HIGH COURT] followed Decided in favour of Assessee. Disallowance u/s 40(a)(ia) of the Act Payment made to mutual fund distributors TDS on brokerage/commission not paid as per section 194H of the Act Held that:- Securities include Mutual Funds and the provisions of Section 194H excludes commission or brokerage paid on securities the services rendered by Mutual Fund brokers do not fall within the term 'Professional Services' - The services of Mutual Fund brokers cannot be termed as technical services as well, as the brokers do not require any special qualification in the field of law, engineering, accountancy or technical consultancy - Even an ordinary graduate from humanities group can be a broker - The brokers do not provide any technical know-how either, thus services rendered by them cannot be termed as technical services Decided in favour of Assessee.
|