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2019 (6) TMI 541 - AT - Income TaxAllowability of advances written off - amount due from the subsidiary not recoverable - business loss OR capital loss - assessee is in hospitality business - CIT(A) deleted the advances - HELD THAT:- We note that learned CIT(A) has found that advance was very much in line of the assessee’s business. He also found due nexus between advances given to the subsidiary and assessee’s business. He found that these advances to the subsidiary cannot be treated as advances which could derive benefit of enduring nature. Learned CIT(A) placed reliance upon several case laws for the proposition that advances to the subsidiary in line of assessee’s business and non-recovery thereof should be allowed as business loss. Hence, learned CIT(A) deleted the advances. We find that the above action of learned CIT(A) does not suffer from any infirmity. Assessee’s advance to subsidiary which was also engaged in the hospitality industry was revenue in nature as mentioned here in above. Non-recovery thereof is liable to be allowed as revenue expenses. While disallowing assessee’s claim the AO has commented that by giving those advances to the subsidiary the assessee was doing charity at the cost of revenue. This we find is unsustainable proposition. It is settled law that Revenue should not sit in the shoes of businessmen and decide what is appropriate for the business of the assessee. No infirmity in the order of CIT(A). Disallowance for delay in payment of contribution received from employees towards PF and ESIC - AO disallowed impugned payments on the ground that these payments were not made within stipulated time under respective Act - HELD THAT:- These payments were made before the due date of filing of return. Learned CIT(A) has decided the issue in favour of the assessee by referring to Hon'ble Jurisdictional High Court decision in the case of CIT Vs. Hindustan Organics Chemicals Ltd. [2014 (7) TMI 477 - BOMBAY HIGH COURT] and CIT Vs. Ghatge Patil Transport Ltd. [2014 (10) TMI 402 - BOMBAY HIGH COURT].
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