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2018 (8) TMI 1128 - AT - Income TaxAdditions u/s 2(24)(x) - delayed payment of employee contribution to PF - Addition towards interest expenses on account of diversion of borrowed funds for non-business consideration. - Genuineness of commission expenses - Held that:- The ld. CIT(A) has referred to more than 10 case laws in which it has been held that disallowance under section 36(15A) cannot be made if the amount has been deposited before the due date of filing of return. - The Ld. Departmental Representative failed to controvert the contentions against the findings of Ld.CIT(A). - No addition can be made - Decided against the revenue. Regarding interest expenses - Held that:- the assessee has taken loans by way of cash credit limit from bank, term loan from bank and other loans from Chola Mandalam DBF Finance and these loans have been taken for the specific business purposes. Nowhere during the course of assessment proceedings as well as proceedings before the first appellate authority and before us the revenue has been able to bring any evidence on records to prove that the interest bearing founds have been diverted to interest free advances. Further, from perusal of the list of alleged loans and advances, we find that they have been given in connection to the business of the assessee and are for the business exigencies which do not call for any addition for disallowance of interest expenditure. - No additions - Decided against the revenue. Payment of commission - unreasonable expenses - genuineness - Held that:- payment of commission paid to Capt. Hanif has been paid under written agreement, alleged commission has been offered to tax by Capt. Hanif who is assessed to tax @30%, tax has been duly deducted at source, payment of commission has been made through account payee cheque and the purpose of making the payment is also well established from the agreement as well as the nature of payment which is for procuring the helicopter on hire by a political party. - Claim of expenses cannot be denied - Decided against the revenue.
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