Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (5) TMI 341 - AT - Income TaxNon-deduction of TDS on reimbursement of octroi expenses - Held that:- The assessee before us has filed necessary evidence in this regard that in each of the bills raised by the said concern Saraswati Transport Company, separately the octroi charges and transport charges were shown; in addition the assessee has filed supporting evidence, receipt of octroi charges paid by the assessee. In the totality of the above said facts and circumstances, where in addition to the transport charges, the assessee had reimbursed octroi charges, then it is not the requirement of law to deduct tax at source out of reimbursement of expenses of octroi charges. The assessee having not deducted the same, cannot be held to be in default. We find no merit in the aforesaid disallowance made by invoking provisions of section 40(a)(ia) of the Act - Decided in favour of assessee Disallowance of expenses incurred on account of increase in share capital of the assessee company - Held that:- The said expenses are capital in nature and hence, are not to be allowed in the hands of assessee. The ground of appeal No.3 raised by the assessee is dismissed. Taxation of “Industrial Promotion Subsidy” - capital receipt OR revenue receipt - Held that:- The issue arising before us is identical to the issue before the Tribunal in Innoventive Industries Ltd. Vs. DCIT (2017 (4) TMI 44 - ITAT PUNE) and the assessee had received incentive / subsidy from the State Government for setting up the project in the classified area. We hold that subsidy received by the assessee under PSI, 2007 is capital receipt in the hands of assessee. Accordingly, we delete the addition. The grounds of appeal raised by the assessee are thus, allowed.
|