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2015 (8) TMI 377 - HC - Income TaxAddition under Section 43 (B) on account of delayed contribution of superannuation fund - CIT(A) deleted addition affirmed by the ITAT - Held that:- On account of the superannuation fund, the Court has been shown a copy of the Employees' Superannuation Scheme of the Respondent-Assessee. Clause 6 of Section-II is titled “Contributions and Annuities”. Clause (a) envisages the payment of contribution by the employer and not by the employee. Clause (d) clearly states that “the employer shall be liable to pay the total contributions under the Scheme and shall pay the entire contributions to the Trustees in one or more instalments as the case may be.” The remaining clauses of Section-II also envisage payment of expenses of scheme by only the employer. In other words, there is no question of employee's contribution under the Scheme in question. Consequently, the Court finds that there was no occasion to apply Section 43B of the Act to disallow the delayed contribution by the Assessee to the superannuation fund for the months of February and March 2001. The order of the CIT (A), as affirmed by the ITAT, does not call for any interference. The Court declines to frame a question in that regard. Expenditure incurred on purchase of machinery from foreign countries - revenue v/s capital expenditure - Disallowance of the expenditure on the purchase of Banbury mixers as “repair and maintenance” - Held that:- The said expenditure on the import of the two Banbury mixers is required to be treated as capital expenditure. It is further held that the ITAT and the CIT (A) were right in deleting the disallowance of the expenditure on the reduction gear forming part of the 3 Roll calendar to the extent of ₹ 41,23,890 as from the invoice produced by the Assessee, it is clear that the said imported item was part of the 3 roll calendar. Notional interest sought to be added by the AO on the ground that an interest free loan was given by the Assessee to its sister concern, Modi Stone Limited -ITAT deleted addition - Held that:- The sum of ₹ 2 crores was advanced to Modi Stone Limited on account of commercial expediency as the said company was declared sick by the BIFR by its order dated 15th April 1998. The Court finds that the decision of the ITAT on the above aspect is turned purely on facts. The view taken by the ITAT on facts was a plausible one. Consequently, the Court finds that no substantial question of law arises for determination as far as the said issue is concerned.
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