Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (2) TMI 742 - AT - Income TaxAddition u/s 40A(3) - Held that:- Since the assessee has not been able to substantiate that it falls under any of the circumstances specified under Rule 6DD of the Rules, we are of the considered opinion that the assessee cannot be allowed cash payment exceeding ₹ 20,000/- under section 40A of the Act. Accordingly, we uphold the finding of the learned Commissioner of Income-tax (Appeals) making disallowance - Decided against assessee Disallowance under section 14A r.w.r 8D of Rules - Held that:- We direct the Assessing Officer to restrict the disallowance under section 14A of the Act to the extent of exempt income earned by the assessee. Enhancement to book profit by way of adding provision for leave encashment and provision for gratuity - Held that:- Since in the instant case, the facts that how the provision for leave encashment and gratuity have been computed, are not before us and, therefore, we are unable to hold whether the provisions made by the assessee towards the leave encashment and gratuity are ascertained liabilities. In view of above, we feel it appropriate to restore the matter to the file of the Assessing Officer with the direction to examine the actuarial valuations made by the assessee in respect of provision for leave encashment and gratuity and then decide, whether these are ascertained liability or not, keeping in view of the ratio of the Hon’ble Supreme Court in the case of Bharat Earth Movers (2000 (8) TMI 4 - SUPREME Court ).
|