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2010 (1) TMI 908 - AT - Income TaxDisallowance of belated payment of Employees P.F. and E.S.I.C. u/s 36 (1)(va) - held that:- following the decision of apex court in CIT vs Alom Extrusions Ltd. (2009 -TMI - 35073 - SUPREME COURT ), Employers/Employees contribution to P.F/ESIC, if paid within the due date of filing of the return u/s 139(1) should be allowed and cannot be disallowed u/s 43B. Loss arising from exchange fluctuation - change in method of accounting in respect of foreign currency transactions - held that:- the particulars of usage of funds in the subsequent year were not before the AO. We also feel that whether the loss in value of monies realised from issue of shares and kept abroad by the assessee abroad can be considered as business loss of the assessee has to be looked into. There are various aspects which require further investigation. - matter restored before AO. Levy of interst u/s 220(1) on enhanced MAT tax liability u/s 115JB - held that:- Interest u/s 220(2) starts only after the demand is made and the assessee does not pay the amount within the permitted time. We therefore find no merit in the claim of the assessee that levy of interest u/s 220(2) is not correct on the tax arising from enhancement of the Book Profits. The appeal of the assessee on this issue is dismissed. Deduction u/s 35D / 35DD - expenses incurred towards increase in authorized share capital in connection with substantial expansion of assessee's business. - held that:- Allowability of relief u/s 35DD has been made for the first time before the CIT(A). The AO has not been given an opportunity to examine the matter. - matter restored before AO. Expenditure on De-merger u/s 35DD - held that:- all the particulars of expenses regarding demerger were not considered by the AO. Further, the Demerger has taken place with effect from 1.4.2001. As per sec 35DD, 1/5th of the expenses are allowable in that year and 4 successive Assessment Years. It is not clear whether the expenses were claimed in the earlier years and if so the result thereof. - matter restored before AO. Enhanced rate of depreciation on vehicles - 20% or 50% - commercial vehicles - held that:- it is not necessary for the vehicle to be used for commercial purposes for claiming higher rate of depreciation. In fact cabs have been excluded from the definition of commercial vehicle, as they are dealt with separately. - CIT(A) was correct in upholding the claim of the Assessee for depreciation @ 50% in respect of motor vehicles acquired after 1.4.2001 and used before 1.4.2002. Provision for doubtful debts - computation of book prifit u/s 115JB - MAT- held that:- The retrospective amendment has nullified the decision of the Apex Court in the case of HCL Comnet (2008 -TMI - 30808 - SUPREME COURT). In view of the retrospective amendment to sec 115JB with introduction of explanation(i), w.e.f 1.4.2001, we allow the revenue's appeal and hold that in computing the Book Profits u/s 115JB the provision for doubtful debt and advances of Rs.595,24,304/- cannot be excluded and is required to be added back. computation of book prifit u/s 115JB - MAT - Adjustment of provision for wealth tax - held that:- jurisdictional High Court in the case of Echjay Forgings Ltd (2001 -TMI - 13956 - BOMBAY High Court) has held that provision for wealth tax is not be added to the Book profits while computing Book Profits u/s 115J. The ratio will be equally be applicable to sec 115JB also.
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