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2024 (2) TMI 267 - ITAT DELHIWeighted deduction u/s 35(2AB) - claim for deduction denied on the ground that Form No. 3CL was not furnished by the assessee before completion of assessment approving the R & D expenditure by DSIR - CIT(A) decided in favor of assessee - Allowability of Revenue expenditure partly as not approved for weighted deduction by DSIR as Revenue expenditure u/s 37 - HELD THAT:- We observe that in the appellate proceedings the assessee furnished Form No. 3CL issued by DSIR quantifying the expenditure allowable for weighted deduction u/s 35(2AB) based on which the ld. CIT (Appeals) allowed the claim for weighted deduction. We further observe that the Revenue expenditure which was not approved for weighted deduction by DSIR was directed to be allowable as Revenue expenditure under section 37 of the Act while computing the income of the assessee by the ld. CIT (Appeals) - AO has not questioned the genuineness and allowability of these expenses. Moreover, during the course of appellate proceedings, on being asked, the AR has furnished these details and it is observed that these expenses have been incurred for the purposes of the business and therefore the same are allowable as revenue expenditure. In view of this, the balance expenses are allowable as revenue expenses and the AO is directed accordingly. Thus we sustain the order of the ld. CIT (Appeals) and reject this ground of appeal of the Revenue. Addition made u/s 68 - assessee company received un-secured loan - report sent by DDIT (Investigation Wing) Kolkata proves that the loan creditor though submitted some of the documents the principal officer of the said company was not present for deposition - AO disbelieved the documents furnished by the assessee and added the loan as unexplained credit - CIT(A) deleted addition - HELD THAT:- As loan creditor has filed its return of income for the year under consideration declaring net income of Rs. 29,63,710/- and has paid taxes on the same. On perusal of the balance sheet of the loan creditor it is clear that the capital account and reserves of the company stood at Rs. 15,65,58,169/- as on 31st March, 2014. The loans and advances of the creditor company stood at Rs. 10,62,64,984/-. On the date of loan i.e. 3.10.2013, before disbursement of loan to the assessee company the balance of bank account of creditor company stood at Rs. 8,83,089/- (credit and the bank statement reveals that an amount of Rs. 2.20 crores was advanced as loan to the assessee company through RTGS making its balance at Rs. 2,11,16,910/- (debit). It is clear from the bank statement that the balance remained at over draft. This fact was also confirmed by the Karnataka Bank Ltd. in its certificate dated 22.05.2017 wherein it has been clearly stated that the creditor company was enjoying over-draft limit of Rs. 7 crores and an amount of Rs. 2.20 crores has been remitted on 3.10.2013 in favour of the assessee by debiting the over-draft account of the creditor company. We further observe that the evidences furnished by the loan creditor before the DDIT, Investigation Wing, Kolkata, clearly proves that the identity, creditworthiness and genuineness of the transaction. We further observe that all these evidences and submissions of the assessee were considered by the ld. CIT (Appeals) and deleted the addition correctly. Appeal of revenue dismissed.
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