Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (1) TMI 856 - AT - Income TaxDisallowance u/s 14A - Addition towards expenditure alleged to be incurred in earning exempt income - Held that:- It is undisputed fact that there was no exempt income earned during the previous relevant assessment year under consideration. It is trite law that in the absence of any exempt income, no addition under Section 14A can be made. We hold that no addition is called for on account of any alleged expenditure towards any exempt income. - Decided in favour of assessee. Disallowance under Section 40(a)(ia) - TDS deducted was remitted by delay - Held that:- The undisputed facts of the case are that the amount of TDS deducted was remitted to the account of the Government before the due date of filing of the return of income. This fact is emerging out of the assessment order vide page no. 13 of the assessment order. It is settled principle of law that the second proviso to section 40(a)(ia) is applicable with retrospective effect and in this connection reliance is placed on ITO Vs. Anil Kumar & Co., (2013 (7) TMI 231 - KARNATAKA HIGH COURT )- Decided in favour of assessee. Disallowance under Section 80G - Held that:- There is no evidence on record to show that the receipts are produced before the Assessing Office. Accordingly, we restore the matter to the file of the Assessing Officer for verification of the donations made. - Decided in favour of assessee for statistical purposes. Disallowance of gifts and awards distributed to the trainees for the best performance - Held that:- Since the assesee company was engaged in the business of management consultancy and training, it is not in dispute that the expenditure was actually incurred. The Assessing Officer only disallowed the same on the ground that the expenditure is not for business purposes. In the absence of management consultancy, training & development and human resource development, this expenditure cannot be considered to be non-business purposes and the reasoning of the Assessing Officer cannot be accepted. - Decided in favour of assessee
|