Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (3) TMI 656 - AT - Income TaxTP Adjustment - AMP Expenses - whether AMP expenditure is an international transaction or notselection of MAM? - HELD THAT:- As relying on Maruti Suzuki India Ltd [2015 (12) TMI 634 - DELHI HIGH COURT] we delete the AMP TP adjustment and the mark up thereon. Disallowance of provision for leave encashment - AO disallowed the said provision under section 43B(f) for the reason that leave encashment can be claimed as deduction only on actual payment basis - HELD THAT:- The Calcutta High Court in Exide Industries Ltd v UOI [2007 (6) TMI 175 - CALCUTTA HIGH COURT] struck down the provisions of section 43B(f). However, the Supreme Court in UOI v Exide Industries Ltd [2008 (9) TMI 921 - SC ORDER] held that clause (f) of section 43B is constitutionally valid and operative for all purposes. Thus, the provision for leave encashment was righty disallowed by the AO and we confirm the same. The assessee has taken an alternate plea that AO be directed to grant relief in respect of payment made towards provision for leave encashment in subsequent years. The direction to allow deduction for subsequent years is not pertaining to the year under consideration and hence we refrain from giving such directions. However, we direct the AO to verify the actual payments made during the previous year relevant to the assessment year under consideration towards leave encashment and allow the same as deduction under section 43B(f). The AO shall also ensure that the assessee does not get double deduction on provision basis and payment basis. Disallowance of depreciation on intangibles - AO has disallowed the same following the earlier years assessment orders - HELD THAT:- The Kamataka High Court in assessee's own case for AY 2000-01 [2020 (12) TMI 672 - KARNATAKA HIGH COURT] has decided this issue in favour of the assessee. Disallowance of interest on customs duty - AO disallowed the same for the reason that interest on customs duty is allowable on actual payment basis u/s 43B - HELD THAT:- In the instant case, the AO has not examined the nature of levy of interest on customs duty. If the interest on customs duty is payable for keeping the imported goods in the customs warehouse beyond the statutory period the said interest would not be covered by section 43B and would be allowable as deduction even if it is not paid. However, if the interest on customs duty is payable for the arrears of customs duty or delayed payment of customs duty then the said interest would be regarded as part and parcel of the customs duty. In such circumstances, the assessee cannot get deduction for interest payable as such interest is directly linked to non-payment or late payment of customs duty. As customs duty is allowable only on payment basis under section 43B, interest levied on arrears or late payment of customs duty is also allowable on actual payment basis under section 43B. The AO is directed to verify the nature of levy of interest on customs duty and decide the allowability of deduction as per our above direction. It is ordered accordingly. Negative movement of deferred revenue - HELD THAT:- As decided in own case 2022 (3) TMI 1506 - ITAT BANGALORE] AO is directed to grant consequential relief in accordance with the decision of the coordinate bench of the Tribunal in terms of adjustment of TDS credit and negative movement in the deferred revenue. The AO is directed accordingly and that a reasonable opportunity of being heard to be given to the assessee before the final decision.
|