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2021 (7) TMI 281 - AT - Income TaxDisallowance of ROC expenses u/s 35D - AO disallowed by holding that payment to ROC for increase in capital is a capital expenditure and added to the total income of the assessee - HELD THAT:- This issue has rightly been decided by the CIT(A) on relying on the judgment of Hon’ble Supreme Court in the case of Brookbond India Limited [1997 (2) TMI 11 - SUPREME COURT] and Punjab State Industrial Development Corporation [1996 (12) TMI 6 - SUPREME COURT] wherein it was held that the ROC expenses as fees for enhancement of capital was not a revenue expenditure. Therefore this ground cannot be allowed. Ground No.2 is dismissed. Disallowance u/s. 14A r.w.r. 8D - No suo moto any expenditure in this regard disallowed by the assessee - HELD THAT:- The assessee is unable to demonstrate that on the date of investments he had sufficient own funds available. While calculating the disallowance u/s. 14A, only those investments should be considered which has yielded exempt income. We are sending back to the file of Assessing Officer for recalculation of the disallowance u/s. 14A of the Act. Needless to say that reasonable opportunity of being given to the assessee and the assessee is also directed not to seek unnecessary adjournments. Accordingly this ground is allowed for statistical purposes. Disallowance of differed employee compensation - CIT(A) has dismissed by holding that for want of details were not provided by the assessee - HELD THAT:- The assessee has filed a paper book and has submitted that benefit received by the employee has been added in their income as a prerequisite and properly TDS has been made and in support he has submitted Form No.16 issued to the employees and computation of income. CIT(A) observed that the assessee did not file any details of perquisites paid to the employees to which the CIT(A) has narrated in para No.9.2 in his order - we remit this issue to the file of Assessing Officer for further verification and the assessee is directed to produce all the documents in support of his claim of the expenditure and the Assessing Officer is directed to provide reasonable opportunity of hearing to the assessee. The assessee is directed not to seek unnecessary adjustments. Therefore this ground of the assessee is allowed for statistical purposes.
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