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2015 (12) TMI 460 - AT - Income TaxDisallowance u/s 14A - Held that:- It is uncontroverted fact that assessee did not have any exempt income during the year. Hon Delhi High court in case of Cheminvest Limited V CIT [2015 (9) TMI 238 - DELHI HIGH COURT] has held that where there is no exempt income there cannot be any disallowance u/s 14A of the Income Tax Act. Therefore respectfully following the decision of Honourable Delhi high court we reverse the order of CIT (A) confirming disallowance - Decided in favour of assessee. Disallowance being payments made under Voluntary retirement scheme - Held that:- The claim of the assessee is allowable u/s 35DDA of the act and no deduction u/s 37(1) is permitted for expenditure on voluntary retirement scheme. In none of the decision cited before us, Honourable courts were concerned about the allowability of claim of VRS expenditure u/s 35DDA of the act as well as u/s 37(1) of the act. Further all the cases cited pertains to AY prior to introduction of section 35DDA of the act except in case of CIT V KJS India Private Limited (2011 (9) TMI 667 - Delhi High Court ), however provision of section 35DDA was not brought to the notice of the court. Therefore these decisions render no help to the cause of the assessee. Thus we confirm the order of CIT (A) disallowing the claim of the assessee u/s 37(1) of the act on account of payment made under voluntary retirement scheme - Decided against assessee. Non granting adjustments of TDS - Held that:- CIT (A) is not justified in dismissing this ground of appeal. If the assessee has filed TDS certificates along with the return of income filed by the assessee and if the claim is according to the law , assessee should be granted the credit for such TDS certificate. In view of this we direct AO to grant credit of TDS certificates on merit after proper verification if the credit complies with the provision of section 199 of the Income Tax Act. - Decided in favour of assessee. Disallowance of carry forward of loss - Held that:- We direct that assessee should be allowed the carry forward of losses as shown by the return of income in view of press release of CBDT dated 22.12.2008 in No 402/92/2006-MC-(53 of 2008) where CBDT has accepted that returns filed electronically on 30.9.2008 where the acknowledgement date is 1.10.2008, shall be treated as having filed on 30.9.2008. Hence AO is directed to allow the claim of carry forward of losses as same is permissible according to the law. We reverse the finding of CIT (A) on this count.- Decided in favour of assessee. Disallowance on account of prior period expenses - Held that:- In fact there is no expenses debited by the company but there is a reversal of income by the assessee of interest income of ₹ 10,77,555/- out of interest income shown of ₹ 29,25,000/- in AY 2007-08 which was received only of ₹ 18,47,445/- and therefore the reversal of ₹ 10,77,555/- was made debiting the expenses account as tax has already been paid on the interest of ₹ 29,25,000/- in earlier years. Further an amount of bonus of ₹ 65092/- and gratuity of ₹ 1104478/- were already disallowed u/s 43B of the act. Thus no infirmity in the order of CIT (A) in deleting the disallowance - Decided against revenue Disallowance on account of loss on sales of stores and spares written off - Held that:- Identical claim of the assessee was allowed by AO himself for AY 2006-07 and Ld DR did not controverted this fact. We have perused the order of AO dated 28.3.2015 passed by AO for A Y 2006-07 where in as per Para no 12 AO has held that these expenditure are revenue in nature and allowable to the assessee. Both the parties agreed that there is no change in the facts of the case for this year also. In view of this we confirm the order of CIT (A) deleting disallowance - Decided against revenue
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