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 930 - AT - Income TaxDisallowance of amounts spent on member benevolent fund and member’s death relief fund - Held that:- The amount spent by the assessee for the welfare of its members out of the earmarked funds cannot be deductible as expenditure wholly and exclusively incurred for the purpose of business. From the findings of the facts, the CIT(A) did not appreciated the facts correctly while deleting the impugned additions. There is difference of findings of facts in the orders of the CIT(A). The assessee contends that the amounts spent out of members benevolent fund and members death relief fund but, the CIT(A) states that the amount contributed to these funds are for the welfare of the employees. Thus, there is clear difference between findings of facts by both the authorities, which needs to be relooked by the CIT(A). Therefore, we remit the issue back to the file of the CIT(A) in the light of the discussion above and direct the CIT(A) to consider the issue after affording an opportunity of hearing to the parties. Disallowance of amortisation of premium paid on Govt. Securities - Held that:- The assessee is eligible for deduction towards amortisation of premium paid on Govt. securities as relying on case of Sir.M. Visweswaraya Co-op Bank Ltd., Vs. JCIT [2012 (9) TMI 774 - ITAT, BANGALORE]
|