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2015 (8) TMI 869 - AT - Income TaxDisallowance of expenses incurred towards feasibility study - CIT(A) deleted the addition - Held that:- Aappeal filed by the Revenue is dismissed on account of low tax effect. Addition being employee’s contribution deposited after the statutory due date but before the end of the relevant financial year - Held that:- As relying on case of CIT vs. M/s. Hindustan Organics Chemicals Ltd [2014 (7) TMI 477 - BOMBAY HIGH COURT] wherein held that we fail to understand how this deduction could have been disallowed to the Assessee. Admittedly, the Assessment Year in question is 2006-07. The second proviso to section 43B quoted above was deleted with effect from 1st April 2004 and simultaneously the first proviso was also amended bringing about a uniformity in deductions claimed towards tax, duty, cess and fee on the one hand and contribution to the employees' provident fund, superannuation fund and other welfare funds on the other. These deductions being claimed in the return of income filed for the Assessment Year 2006-07, the amendments to Section 43B which came into force with effect from 1st April 2004 would have clearly applied to the Assessee's case. In this view of the matter also, we find that the ITAT was fully justified in deleting the addition of ₹ 1,82,77,138/- on account of delayed payment of provident fund of employees' contribution. Considering the above settled position of law, we are of the opinion that the order of the CIT (A) is required to be reversed on this issue as such, the assessee is entitled to deduction. - Decided in favour of assessee. Allowability of the club expenses by way of membership entry fee to the club - Held that:- As decided in case of Clariant Chemicals (I) Ltd vs. Addl. CIT [2014 (11) TMI 439 - ITAT MUMBAI] in assessee’s own case for the earlier assessment year, it has been held that an expenditure incurred on account of payment of membership entrance fee paid to the club is an allowable expenditure – Decided against revenue.- Decided in favour of assessee.
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