Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (8) TMI 972 - AT - Income TaxDisallowance of exchange difference arising on account of import of Hand sets traded by the assessee - Held that:- We reject the ground of the assessee for treating the expenses on revenue account. However, we direct the Assessing Officer to allow depreciation on this amount being the same on capital account for purchase of machinery/ hand set. Disallowance on account of contribution to superannuation fund due to delay of 32 days in depositing - Held that:- This issue is covered by the decision of CIT Vs. Alom Extrusions Ltd. (2009 (11) TMI 27 - SUPREME COURT), wherein it is held that if the contribution has been paid before filing the return, then the same is allowable. Since the issue is covered by the decision of Hon’ble Supreme Court, therefore, we direct the Assessing Officer to allow the deduction which is paid before filing the return of income Treating licence fee paid to Department of Telecom (“DOT”) as capital expenditure by invoking sec. 35ABB - Held that:- Here in the present case facts are on much stronger footing, as assessee is paying license fee annually, whereas in the case of Bharti Infotel Ltd. (2015 (1) TMI 1259 - ITAT DELHI ) license fees was paid in the first year itself for 15 years. These cases are applicable directly on the issue. Therefore, in view of the above observations of ours and in view of these decisions, we hold that the expenditure on account of license fee paid by assessee is revenue in nature and is allowable u/s 37(1) of the Act. Accordingly, we direct the Assessing Officer to allow the expenditure as claimed by the assessee. Disallowance towards notional interest on investments in an advances made to subsidiary company - Held that:- As stated above, the assessee has its own funds, therefore, the entire addition is liable to be deleted. Even otherwise, the amount has been advanced to its sister concern/ subsidiary, which are doing business and it has been clearly stated that the same has been advanced for commercial expediency, no disallowance is to be made. Treatment to interest income - business income OR income from other sources - Held that:- We are of the view that the matter should be examined afresh by the Assessing Officer by examining the factual aspect that on which amount the interest has been earned; whether there is direct nexus between earning of interest and expenditure of interest. If there is a direct nexus between earning of interest and expenditure of interest then set off is to be given and if there is an income on account of surplus funds then of course the interest income has to be treated as income from other sources. Since facts are not clear, therefore, we set aside this issue to the file of the Assessing Officer. For the sake of clarification, this observation was made in the open court and both the parties agreed to these observations made by the Bench.
|