Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (5) TMI 101 - AT - Income TaxDeduction claim u/s 80IC - Interest on FDR from fund of different unit - no finance charges debited in unit - allocation of HO expenses on estimation basis - HELD THAT:- A.O. is directed to verify whether the assessee has reduced ₹ 62,91,275/- from deduction u/s 80IC and then give deduction on this amount. Regarding the finance charges of Rudrapur unit of ₹ 60,30,690/-, we note that the A.O. allocated ₹ 60,30,690/- as finance charges of Rudrapur unit without taking into account facts submitted by the assessee. The ld Counsel submitted before us explanation which has not been considered by the AO. We direct the AO to verify the facts as mentioned above and re-compute the deduction under section 80IC in accordance with law. Allocation of H.O. office expenses relating to Rudrapur Unit, on estimate basis we note that assessee`s books of accounts are audited by a chartered accountant. The books of accounts are not rejected by the AO. We note that the AO could have ventured into estimation only after rejecting the books of accounts of the assessee u/s 145(3) and thereafter by best judgment assessment u/s 144 . Here in this case, the AO has not passed any order u/s 144 of the Act. AO thus without rejecting the books of account of the assessee has gone for estimation on suspicion and conjectures and made estimated disallowance of ₹ 3,00,000/-, which is not tenable and therefore, we delete the addition of ₹ 3,00,000/- Allowability of commission - HELD THAT:- The assessee has raised ground relating commission paid of ₹ 5 lakhs, which has been disallowed.However, the said sum was disallowed in A.Y. 2009-10 also. Therefore, the A.O. is directed to verify the TDS payment and allow the claim of the assessee in accordance with law.
|