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2020 (6) TMI 466 - AT - Income TaxDelayed payments in employee’s contribution to welfare fund - HELD THAT:- This issue is squarely covered by the decision of the Supreme Court in the case of Commissioner of Income Tax vs. Alom Extrusion Ltd. [2009 (11) TMI 27 - SUPREME COURT]. Therefore, employee’s contribution deposited beyond the due dates specified under the relevant PF laws, but before the due date of filing income-tax return as specified in section 43B of the Act, cannot be treated as the deemed income of the appellant within the meaning of section 36(1)(va) read with section 2(24)(x) of the Act. Therefore, the addition of ₹ 19,85,240/- made by the AO has been rightly deleted by ld CIT(A).That being so, we decline to interfere with the order of Id. C.I T.(A) in deleting the aforesaid addition. His order on this addition is, therefore, upheld and the grounds of appeal of the Revenue are dismissed. Addition u/s 36(2) proviso (i) of the Act, pertaining to bad debts - HELD THAT:- We note that the assessee company has debited written off on account of bad debts in its audited Profit &Loss account.CIT(A) relied on the judgment of the Apex Court in the case of TRF Ltd vs CIT [2010 (2) TMI 211 - SUPREME COURT] wherein as held After 1st April, 1989, it is not necessary for the assessee to establish that the debt, in fact, has become irrecoverable. It is enough if the bad debt is written off as irrecoverable in the accounts of the assessee. Addition u/s 194C(7) read with section 40a(ia) - HELD THAT:- Through the submission put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the fact of the case including the findings of the ld CIT(A) and other materials available on record. We have gone through the order of ld CIT(A) and noted that ld CIT(A) has reached on a logical conclusion, hence we note that there is no infirmity in the order of the ld. CIT(A). That being so, we decline to interfere in the order passed by the ld. CIT(A), his order on this issue, is hereby upheld and the ground no. 3 raised by the revenue is dismissed. Addition which pertains to reimbursement of expenses - HELD THAT:- A.O. has treated the reimbursement expenditure as income due to the facts that TDS was deducted. These reimbursements under no stretch of imagination can be considered to be income at the hands of the appellant. The deduction of TDS on expenditure reimbursed would not change the nature of these payments. There are number of judicial decisions which have held the reimbursement of expenditure does not constitute income assessable to tax. Addition being Puja and subscription expenses - HELD THAT:- We note that Puja and subscription expenses are incidental to the assessee`s business therefore should be allowed We note that there is no infirmity in the order of the ld. CIT(A) . That being so, we decline to interfere in the order passed by the ld. CIT(A), his order on this issue, is hereby upheld and the ground no. 5 raised by the revenue is dismissed. Disallowance u/s 14A read with Rule 8D of the Rules - HELD THAT:- Since the assessee does not have any exempt income therefore no disallowance is warranted as held in the case of Chem Investment vs CIT [2015 (9) TMI 238 - DELHI HIGH COURT] wherein it was held that if there is no exempt income earned or received by the assessee, no disallowance is warranted u/s 14A read with Rule 8D of the Rules. Since this issue is squarely covered by the Hon’ble Delhi High Court in the case of Chem Investment (supra) therefore, we dismiss the ground no. 6 raised by the revenue and upheld the order of ld CIT(A). Appeal of the revenue is dismissed.
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