Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (1) TMI 154 - AT - Income TaxAddition on account of Employees’ Provident Fund and Employee State Insurance Corporation - Claim was rejected by the Ld. AO on the ground that that the same was not paid on or before prescribed due date - HELD THAT:- AO, added the same as it is not allowable under section 43B of the Income Tax Act, 1961. The same was further confirmed by the Ld. CIT(a) the issue is already been decided against the assessee in terms of the ratio laid down passed by the Hon’ble Jurisdictional High Court in the case of Gujarat State Road Transport Corporation (GSRTC) [2014 (1) TMI 502 - GUJARAT HIGH COURT]. Hence, we find no merit in this ground of appeal preferred by the assessee. The same, thus, dismissed. Disallowance of depreciation of building given on lease - HELD THAT:- As decided in UNIVERSAL PLAST LTD. AND GUNTUR MERCHANTS COTTON PRESS CO. LTD. VERSUS COMMISSIONER OF INCOME-TAX [1999 (3) TMI 15 - SUPREME COURT] no irregularities in the order passed by the authorities below in not allowing such income of rent received by the appellant as income from business or profession and in not allowing the depreciation claimed by the assessee upon the categorizing the said income as income from house property. So as to, warrant interference hence we confirm the same. Assesse’s appeal is thus found to be devoid of any merit and hence dismissed. Upward adjustment u/s 92CA(3) in respect of the international transactions of the appellant pertaining to payment of managements fees - HELD THAT:- Under the mutual agreement procedure the 70% actual expenses incurred under the management fees was allowed for Assessment Years 2007-08, 2008-09, and 2009-10 in respect of the case of the assessee itself. Advanced pricing agreement has been recognized as the highest body under the income tax authority being the CBDT and in view of the allowability of expenses made by the APA as mentioned hereinabove we are of the view that the management expenses cannot, at all be said to be nearly as the case sought to be made out by the revenue before us. In that view of the matter taking into consideration the advanced pricing agreement which was applied in respect of Assessment Years 2015-16, 2016- 17, 2017-18 and 2018-19, we are of the considered opinion to allow 1.5% of the operating revenue of on the identical facts and circumstances available before us taking into consideration the increasing ratio of the allowability of the expenses incurred by the assessee. It is on record that for Assessment Years 2015-16 to 2017-18 the disallowance was of 2% only wearers, in 2018-19 it has increased to 3%. Since the assessment proceeding before us is for the year 2011-12 March before the consideration of the year under APA in our considered view 1.5% disallowance will be appropriate for the case of the assessee before us .Further that the learned and departmental representative failed to bring any country document which shows that the fact is otherwise than that has been dealt with by the advanced pricing agreement while determining the allowability of expenses of the appellant company. Since the assessee has claimed the expenses to the tune of ₹ 2,31,35,833/- and after applying 2% of the operating revenue of manufacturing segment which is worked out at ₹ 2,20,88,379/-, hence we disallow ₹ 10,47,454/- lakh against the assessee in respect of the operating revenue of manufacturing segment. In the result assesses appeal is partly allowed.
|