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2018 (2) TMI 1818 - ITAT KOLKATADisallowance u/s 14A - no satisfaction was recorded by the AO as to the applicability of the said provisions and even the share capital and reserves of the assessee were more than the investments made - Held that:- Where the assessee makes a claim that only a particular amount is to be disallowed u/s 14A or where the assessee does not make a disallowance under section 14A, if the AO proposes to invoke the section 14A, he is to record a satisfaction on that issue. This satisfaction cannot be a plain satisfaction or a simple note. It is to be done with regard to accounts of the assessee. In the present case, there is no satisfaction by the AO and consequently, in view of the decision of the Coordinate Bench of this Tribunal in the case of Balrampur Chini Mills Ltd referred to supra, no disallowance under section 14A can be made. Thus the addition made u/s 14A of the Act is deleted. - Decided in favour of assessee. Disallowance being foreign travelling expenses as incurred for business purposes and was allowable deduction - Held that:- In the present case Mr. Yash Kajriwal served the assessee company after completing studies abroad as per Agreement with the assessee company. Since the disallowance being expenses for sponsoring higher education of Shri Yash Kajriwal was disallowed only on the basis that he was not an employee, the disallowance is directed to be deleted. As far as the remaining sum of ₹ 5,15,759/- assessee submitted that no details whatsoever were called for and prayed that the issue may be set aside to the AO to enable the assessee to give the required details. Since the assessee was not called upon to explain the details of these expenses by the AO it would be just and proper to set side the order of the CIT(A) , as far as the remaining sum ₹ 5,15,759/- is concerned. We set aside the order of the CIT(A) and remand to the AO for fresh consideration after due opportunity to the assessee the disallowance of foreign travel expenses - Appeal by the assessee is partly allowed.
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