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2016 (2) TMI 198 - AT - Income TaxDisallowance of Directors’ remuneration - CIT(A) deleted the addition - Held that:- A.O had disallowed the expenses on comparing the expenses with that of earlier year. We further find that apart from the absolute increase in terms of expenses no material has been brought on record to demonstrate the excessiveness of remuneration. We also find that ld. CIT(A) while deleting the addition has noted that the two Directors’ to whom the remuneration was paid have shown the remuneration received from the Assessee as their income and has also paid the taxes. He has also given a finding that the payment of excess remuneration cannot be considered to be a diversion of income with a view to avoid taxes. Before us, Revenue has not placed any material on record to controvert the findings of ld. CIT(A). In view of the aforesaid facts, we find no reason to interfere with the order of ld. CIT(A) - Decided against revenue Disallowance of various expenses - CIT(A) deleted the addition - Held that:- The perusal of provisions of Section 251(1)(a) reveals that CIT(A) in an appeal against an order of assessment can confirm, reduce, enhance or annul the assessment. The power of setting aside which was available to CIT(A), is no more available to CIT(A) by virtue of amendment made by Finance Act 2001 with effect from 1.06.2001. Thus it can be seen that in the present case CIT(A) has set aside the issue to the file of A.O, the powers of which are not available to him at the relevant time. We therefore are of the view that the matter needs to be restored to the file of CIT(A) for considering the submissions of the Assessee and thereafter deciding the issue on the basis of facts and circumstances of the case and in accordance with law and after recording a clear finding on the issue. - Decided in favour of Revenue for statistical purposes. Disallowance of PF and ESIC expenses - delayed deposit of employees contribution of PF - Held that:- As decided in case of GSRTC [2014 (1) TMI 502 - GUJARAT HIGH COURT] any sum with respect to the employees contribution as mentioned in s. 36(l)(va), assessee shall be entitled to the deduction of such sum towards the employees contribution if the same is deposited in the accounts of the concerned employees and in the concerned fund such as Provident Fund, ESI Contribution fund, etc provided the said sum is credited by the assessee to the employees accounts in the relevant fund or funds on or before the "due date" under the Provident fund Act, ESI Act, Rule, Order or Notification issued thereunder or under any Standing Order, Award, Contract or Service or otherwise. - Decided against assessee Disallowance u/s. 40A(3) - Held that:- Appellant’s contentions are general and vague since the A.R. of the appellant has not controverted the findings of the A.O., the disallowance made by the A.O is upheld - Decided against assessee
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