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2017 (3) TMI 1870 - AT - Income TaxNature of expenses - expenses paid by the assessee as NPV to enable the assessee to carry on its mining business - whether or not the payment of NPV made by the assessee to carry on its mining activities on forest land is allowable as revenue expenditure? - HELD THAT:- As rightly pointed out that the assessee by making payment of NPV got no fresh right to mining but the said payment was made to overcome restriction or obstruction or disability that had arisen in continuing of the mining business. Merely because it was one-time payment, it could not be considered as capital in nature. Besides, the said issue is covered by assessee`s own case in [2014 (1) TMI 1515 - ITAT KOLKATA] wherein the Tribunal treated the said expenditure as revenue in nature. Therefore, we hold that ld. CIT(Appeals) has rightly held that the above expenditure paid by the assessee as NPV to enable the assessee to carry on its mining business is revenue in nature, which is allowable as business expenditure under section 37(1) - Decided against revenue. Delayed payment of employee`s contribution to PF - As per revenue CIT (A) erred in relying on the provisions of section 43B (b) of the I.T.Act, whereas the present issue is involved with Section 36(1) (va) read with 2 (24) (x) - HELD THAT:- We are of the view that there is merit in the submissions of ld. AR for the assessee, as the proposition canvassed by ld. AR for the assessee are supported by the facts narrated by him above. Ld. AR for the assessee has rightly pointed out that as per Tax audit report column No.16(b) Annexure-B, which clarified that employees` contribution to PF ₹ 2,30,271/- for January 2011 was paid on 23.02.2011, that is, next Month. Therefore, the assessee did not commit and default in depositing the PF contribution even as per section 36(1) (va) r.w.s 2(24) (x) of the I.T.Act. Considering the factual position, we do not find any infirmity in the order passed by the ld CIT(A). Therefore, we confirm the order passed by ld.CIT(A). - Decided against revenue.
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