Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (12) TMI 441 - AT - Income TaxNon deduction of TDS on interest payable to Prasar Bharti - whether as per the provisions of section 196 of the Act, no tax is required to be deducted on the payments being made to a “Corporation” and M/s Prasar Bharti is a corporation created under a statute enacted by Central Government - HELD THAT:-As regards Ground No. 1, 1.1 & 1.2, the same is covered against the assessee, hence, dismissed Disallowance towards leave encashment in view of provisions of section 43B (f) - HELD THAT:- Hon’ble Apex Court in case of Exide Industries [2007 (6) TMI 175 - CALCUTTA HIGH COURT] held that the claim with regard to leave encashment has to be allowed on cash basis i.e. actual payment basis and not on accrual basis. It is pertinent to note that the payments with regards to the leave encashment have been made in subsequent assessment year i.e. 2013-14 and thus, we direct the Assessing Officer to verify and allow the deduction u/s 43B on actual payment basis as held in the decision of the Hon’ble Apex Court. Needless to say, the assessee be given opportunity of hearing by following principles of natural justice. Hence, Ground No. 2, 2.1 2.2 & 2.3 are partly allowed. Addition u/s 14A r.w.r. 8D - HELD THAT:- As the assessee has earned only ₹ 2,34,585/- as exempt income. The assessee also disallowed a sum of ₹ 29,04,491/- u/s 14A. The Ld. AR at the time of hearing contended that the said disallowance was erroneously made by the assessee. This issue needs to be verified. Therefore, we are remanding back this issue to the file of the Assessing Officer and decide the same afresh - Ground No. 3 is partly allowed for statistical purpose.
|