Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (8) TMI 852 - AT - Income TaxExpenditure incurred in connection with the issue of FCCB - nature of expenditure - revenue or capital expenditure - Held that:- Expenditure incurred in connection with the issue of FCCB is deductible as revenue expenditure. TDS u/s 195 - Disallowance u/s. 40(a)(i) - non-deduction of tax at source from certain payments - Held that:- We notice that the Ld CIT(A) has accepted the contentions of the assessee and accordingly deleted the disallowance made u/s 40(a)(i) of the Act. We also notice that the assessing officer has made the disallowance in a mechanical manner without examining the nature of payments made to USA companies. No material to contradict the submissions made by the assessee was furnished before us. Hence we have no other option, but to confirm the order passed by Ld CIT(A) on this issue. Disallowance to be made under clause (f) of Explanation-1 to section 115JB for addition u/s 14A - Held that:- In view of the decision rendered by the Special bench of the Tribunal in the case of Vireet Investment (P) Ltd.(2017 (6) TMI 1124 - ITAT DELHI) AO was not justified in adding the amount computed under section 14A of the Act to meet the requirement of clause (f) of Explanation-1 to section 115JB of the Act. We further noticed that the learned CIT(A) has computed the amount incurred for earning exempt income for the purpose of section 115JB at 10% of the dividend income. Considering the volume of dividend and quantum of addition of ₹ 9.22 crores, in our view the same appears to be reasonable. Accordingly, we uphold the order passed by the learned CIT(A) on this issue.
|