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2019 (1) TMI 535 - AT - Income TaxLate payment of contribution to PF and ESI - Held that:- We fairly agree that the issue is now covered against the assessee by Hon’ble jurisdictional High Court’s judgment in the case of CIT Vs Gujarat State Road Transport Corporation [2014 (1) TMI 502 - GUJARAT HIGH COURT]. We, therefore, decline to interfere in the findings of the CIT(A), which are in consonance with the law so laid down by Their Lordships, on this aspect of the matter. TDS u/s 195 - Disallowance on account of testing expenses - non deduction of tds u/s 40(a)(i) - whether the testing fees is clearly covered by the scope of Section 9(1)(vii) of the Act, and hence the income embedded in the testing fees is taxable in India - income accrued in India - India- Swiss DTAA - Held that:- The taxability under the tax treaty provisions clearly fail to bring the testing fees paid to a Swiss entity within the ambit of its income chargeable to tax in India. As for the connotations of 'make available' clause in the treaty, this issue is no longer res integra as relying on case of DIT v. Guy Carpenter & Co Ltd. [2012 (5) TMI 31 - DELHI HIGH COURT] and CIT v. De Beers India (P.) Ltd. [2012 (5) TMI 191 - KARNATAKA HIGH COURT]] in favour of the assessee. The assessee did not have any tax withholding obligations from payments made to the Swiss entity in respect of the testing fees. Accordingly, the very foundation of impugned disallowance under section 40(a)(i) is devoid of any legally sustainable basis. - Decided in favour of assessee Disallowance of motor car running expenses - allowable busniss expenditure - Held that:- We are of the considered view that this disallowance deserves to be deleted not only for the reason that it is based purely on surmises and conjectures, but also because the assessee being a juridical person, even if there is some element of personal use of car by the directors, it continues to be for business purposes of the assessee nevertheless. We delete the impugned disallowance - Decided in favour of assessee
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