Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (4) TMI 1561 - AT - Income TaxAddition being difference between royalty income as per the books and as per tax deducted at source certificates - difference in the amount of tax deducted at source - HELD THAT:- Assessee in its submissions, filed before the FAA, had furnished a table and had tried to reconcile the difference. It appears that the submissions made by the assessee have not been considered properly. Therefore, we are of the opinion, that in the interest of Justice, the matter should be restored back to the file of the AO for fresh adjudication. He is directed to afford a reasonable opportunity of hearing to the assessee, who would submit all the necessary papers before the AO with regard to royalty received. Accordingly, first ground is decided in favour of the assessee, in part. Disallowance u/s. 36(1)(ii) being commission paid to one of the directors - Addition on the Ground that the directors had not rendered services to the company - HELD THAT:- It is pertinent to note that the commission was paid as per the Board Resolution, that in the earlier year similar expenditure was allowed by the AO, that the director had paid taxes on the commission received, that the higher slab of tax rate was applicable in both the cases. Considering these facts, we are of the opinion that the order of the FAA cannot be endorsed. Ground No.2, is decided, in favour of the assessee. Disallowance on account of depreciation and repair and maintenance - HELD THAT:- FAA had specifically mentioned that the assessee had not filed the full audit report during the appellate proceedings, that the assessee was using its Mumbai property as commercial asset, in absence of correct and full details the AO and FAA had made and upheld the disallowance. Considering the peculiar facts and circumstances of the case, we are of the opinion that matter should be restored back to the file of AO for fresh adjudication. He is directed to afford a reasonable opportunity of hearing to the assessee and decide the case accordingly. Both the grounds are decided in favour of the assessee, in part.
|