Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (6) TMI 443 - AT - Income TaxDisallowance made u/s 43B(f) of the Act - Provision for leave encashment Held that:- The Tribunal being a quasi judicial authority has to decide the appeal only on the basis of the provisions of section 43B(f) of the Act - the provisions of section 43B(f) cannot be ignored as in the case of Exide Industries Limited And Another Versus Union Of India And Others [2007 (6) TMI 175 - CALCUTTA High Court] it was stayed - the claim of the assessee could be allowed only if it is actually paid on the due date for filing the return of income - It is not the case of the assessee that the amount claimed as leave encashment was paid before the due date for filing the return of income - it remains to be paid, the CIT(A) has rightly confirmed the disallowance made by the AO Decided against Assessee. Disallowance u/s 14A of the Act Held that:- The assessee specifically claimed before the Tribunal for the AY 2006-07 that the surplus funds were available for making investment the Tribunal examined the issue and remanded back the matter to the file of the CIT(A) thus, the matter is required to be remitted back to the CIT(A) Decided in favour of Assessee. Fringe benefit tax u/s 115WB of the Act Held that:- When the telephone is installed in the business premises of the assessee for the business purpose it cannot be considered as a privilege, service, facility or amenity to the employee. It is a facility for the purpose of carrying on the business of the assessee - that is a business expenditure - the expenditure incurred by the assessee in respect of telephone installed in the office premises for the purposes of carrying out the business activity cannot be considered as a fringe benefit u/s 115WB of the Act - the matter needs to be verified, whether the telephone installed in the premises of business - If the telephone is installed at the residence of the employee, then it shall be taken as fringe benefit - The assessee has to file the details of expenditure with regard to the telephones which were installed for the benefit of the employee and in respect of the telephones which were installed in the office premises thus, the matter is remitted back to the AO Decided in favour of Assessee. Exclusion of depreciation Value of car for computation of fringe benefits Held that:- The AO disallowed the claim of the assessee only on the ground that there is no distinction made by the assessee in respect of expenditure made on the cars meant for employees as well as the cars meant for test drive the assessee is maintaining cars for test drive and for employees it is for the assessee to segregate the expenditure made on each vehicle the matter is required to be remitted back to the AO for adjudication Decided in favour of Assessee.
|