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2020 (2) TMI 977 - AT - Income TaxAddition u/s 14A read with rule 8D(2)(iii) on account of administrative expenses - HELD THAT:- As decided in own case [2019 (7) TMI 1567 - ITAT AHMEDABAD] CIT(A) after taking note of the various facts as reproduced above came to the conclusion for non applicability of Rule 8D(2)(ii). No substantive fallacy has been pointed out on behalf of the Revenue in the action of the CIT(A) except placing reliance upon the order of the AO. We find that the action of the CIT(A) is in tune with law and judicial precedents. Without repeating the contents of the CIT(A), we endorse the same. - No merit in the plea of the Revenue for applicability of Rule 8D(2)(iii) where the specification of the nature of the expenditure is available and such expenditure can be reasonably identified toward revenue from taxable operations and revenue from income which is exempt. Assessee is entitled for the deduction of employee benefit expenses to the tune of 2/3rd such expenses. Accordingly the assessee gets relief in part. Hence the ground of appeal of the assessee is allowed in part. MAT Computation u/s 115JB - HELD THAT:- The claim of the assessee that no adjustment i s called for while computing book profit is violative of Explanation 1(f) referred to Section 115JB of the Act and thus cannot entertained. No blanket exemption can re ad in the special bench decision in Vireet’s case [2017 (6) TMI 1124 - ITAT DELHI] in this regard. Disallowance of late payment of employee’s contribution to PF and ESI - HELD THAT:- As decided in GUJARAT STATE ROAD TRANSPORT CORPORATION [2014 (1) TMI 502 - GUJARAT HIGH COURT] tribunal has erred in deleting respective disallowances being employees' contribution to PF Account / ESI Account made by the AO as, as such, such sums were not credited by the respective assessee to the employees' accounts in the relevant fund or funds (in the present case Provident Fund and/or ESI Fund on or before the due date as per the explanation to section 36(1)(va) of the Act i.e. date by which the concerned assessee was required as an employer to credit employees' contribution to the employees' account in the Provident Fund under the Provident Fund Act and/or in the ESI Fund under the ESI Act. - Decided against assessee.
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