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2017 (6) TMI 546 - AT - Income TaxDisallowance u/s 43B(b) - whether the gratuity disallowed had accrued to the assessee at all during the relevant previous year and whether the assessee has made any claim of the gratuity payment - Held that:- If there is no claim of gratuity for the relevant A.Y, then the question of disallowance also would not arise. For determination of this aspect, we are of the opinion that verification of fresh facts is not needed as the assessee’s books of account would clearly reflect whether there is any claim of deduction for the relevant previous year. In view of the same, we are inclined to admit the additional grounds of appeal filed by the assessee and remit the issue to the file of the AO with a direction to verify the claim of the assessee and to adjudicate the same in accordance with law. Addition u/s 14A - Addition to towards the proportionate interest debited to the P&L A/c - Held that:- It is seen that M/s. Mayuri India Cusine Inc. is a foreign company and the dividend income earned from such a nonresident company is not exempt from tax but is taxable under the category ‘Income from other sources’. Therefore, the provisions of section 14A would not come into play. The AO has clearly erred in observing that the intention of the assessee is to make the investment to earn the dividend income which is exempt from tax. In view of the same, we direct the AO to delete the disallowance of ₹ 17,52,000 made by the AO towards the proportionate interest debited to the P&L A/c. Addition on difference in the payment of insurance and the claim - Held that:- It is not clear as to how the AO has arrived at the figure of ₹ 1,62,300 as being the difference between the amount claimed and the amount paid by the assessee. As seen from Page No.9 of the Paper Book filed before us, the total of the insurance paid by the assessee is ₹ 28,88,890 whereas the AO mentioned that the claim of the assessee is ₹ 30,76,827. We find that even the CIT (A) has not verified the assessee’s claim and has mentioned payment as ₹ 27,26,590 without any basis. In view of the same, we set aside the issue to the file of the AO to verify the claim of the assessee and if there is no difference in the payment of insurance and the claim, then no addition shall be made.
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