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2016 (1) TMI 172 - AT - Income TaxDisallowance u/s 14A - Held that:- Section 14A will not apply if no income is received or receivable during the relevant previous year. We, therefore, do not find any justification in the action of the ld. Authorities below while disallowing expenditure u/s. 14A of the Act, as none of the authorities below have pointed out receipt of any such income by the assessee which does not form part of the total income. - Decided in favour of assessee. Disallowance of interest - CIT(A) deleted the addition - Held that:- Ultimately, the appellant suffered a loss of ₹ 4,66,43,500/- which was borne by the other joint venture partner as per the terms agreed between the two parties. Accordingly, the assessee suffered a loss to the extent of interest on capital employed for three to six months for stock market operations, but the other joint venture partner had to bear the burden of the aforesaid loss of ₹ 4,66,43,500/-. In view of these facts, this advance cannot be said to be an interest free non-business transaction. Moreover, the advance was given to the broking company for the purpose of investment in the share market. In view of these facts, we do not find any infirmity in the conclusion of the ld. CIT(A) in this regard. - Decided in favour of assessee. Disallowance on account of delayed payments of employees contribution to ESIC/EPF - CIT(A) deleted the addition - Held that:- Where payments of EPF contribution if made after the due date prescribed under the relevant Act and Rules, but before the due date of furnishing the return of income under section 139(1), would be eligible for deduction under section 36(1)(va) read with section 2(24)(x) and sec. 43B. In the instant case, it is not in dispute that the assessee had made the payments before the due date of filing the return of income. No contrary law is placed by the ld. DR. Therefore, we do not find any infirmity in the conclusion of the ld. CIT(A) for deleting the disallowance made by the AO on this count.- Decided in favour of assessee.
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