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2019 (6) TMI 1626 - AT - Income TaxNature of receipt - Credit to capital reserve - Addition holding that profit arising on account of forfeiture of shares is capital receipt in nature - CIT(A) deleted the addition - HELD THAT:- DR could not bring to our notice any case laws to controvert the findings of the ld. CIT(A). In the aforesaid facts and circumstances of the case, we hold that CIT(A) was justified in deleting the addition .That being so, we decline to interfere with the order of Id. C.I T.(A) deleting the aforesaid additions. Interest on unsecured loan and interest on Others – TDS and Sales Tax - HELD THAT:- Interest expense on the delayed payment of service tax is allowable deduction -Assessing Officer has erred in making disallowance of interest paid being Interest on Unsecured Loans and interest on Others – TDS and Sales Tax - Hence, ld CIT(A) has rightly deleted the addition - Appeal of the Revenue are dismissed. Disallowance u/s 14A read with Rule 8D - HELD THAT:- The said issue of the Revenue is squarely covered by the judgment of HOLCIM INDIA P. LTD. [2014 (9) TMI 434 - DELHI HIGH COURT] wherein it was held that in the absence of any tax free income, the corresponding expenditure could not be worked out for making disallowance u/s. 14A - Hon’ble Delhi High Court in the case of Chemnivest vs. Commissioner of Income Tax-Vl, [2015 (9) TMI 238 - DELHI HIGH COURT] held that section 14A will not apply if no exempt income is received during the relevant previous year. Therefore, in view of above, the disallowance made u/s 14A of the Act r.w.r. 8D is not sustainable. Disallowance u/s 36(1)(va) - assessee’s failure to deposit employees’ contribution towards statutory ESI and PF within the due date - HELD THAT:- The issue involved is no longer reintegra. If the assessee pays PF and ESI contribution within the time of filing return of income under section 139(1) of the Act, it would be sufficient compliance and no disallowance is attracted.
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