Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (6) TMI 828 - ITAT KOLKATADelay in payment of tds to government treasury - Disallowance u/s 40(a)(ia) on coal washing charges for non deduction of TDS - Held that:- CIT(A) observed that TDS has been remitted to the Govt. within the extended period for filing of return as vivid from the facts and in any case if disallowed this year, the assessee could have got the claim allowed in the next year on the strength of the TDS certificate as per the proviso to sec. 40(a)(ia) - thus the action of CIT(A) will in no way prejudice the Revenue - we fully agree with the reasoning and factual conclusion of CIT(A) in deleting the disallowance as made by the AO - hence the appeal of revenue is dismissed. Disallowance u/s 14A r.w.r. 8D - sufficiency of own funds - Held that:- Assessee had own surplus funds in form of equity and free reserves - thus presuming that assessee has used its own funds for investment and not the borrowed funds for investment. We hold that the assessee has got sufficient own funds to make the investments and when that point is not in dispute, no disallowance could be made u/s 14A - reliance is place on the judgement of THE COMMISSIONER OF INCOME TAX VERSUS RELIANCE UTILITIES & POWER LTD. [2009 (1) TMI 4 - BOMBAY HIGH COURT] where it is held that investments were from interest free funds available with assessee - thus CIT(A) rightly directed disallowance @ .5% on the dividend earning scrip - Decided partly in favor of assessee. Disallowance u/s 14A r.w.r. 8D for the purpose of computing book profit u/s 115JB - Held that:- he issue is squarely covered by the decision of Hon’ble jurisdictional High Court in the case of CIT Vs. Jayshree Tea & Industries Ltd. [2014 (11) TMI 1169 - CALCUTTA HIGH COURT] where it is held that the provision of section 115JB in the matter of computation is a complete code in itself and resort need not and cannot be made to section 14A - thus respectfully following the orders we restore the matter to AO to calculate the book profit u/s. 115JB - assessee’s appeal is allowed for statistical purpose. Disallowance on account of provision for leave encashment u/s 43B(f) - Held that:- the matter is restored back to the file of AO for adjudication as per the decision of M/S. S.R. BATLIBOI & CO. VERSUS DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE-54, KOLKATA. [2012 (3) TMI 585 - ITAT KOLKATA] - restore this issue back to the file of the AO for adjudication to await the final outcome of the Hon’ble Apex Court in M/s. Exide Industries Ltd. case [2009 (5) TMI 894 - SUPREME COURT ] and thereafter decide this issue - hence the appeal of assessee is partly allowed for statistical purposes.
|