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2024 (2) TMI 887 - AT - Income TaxAddition / variations on account of commission, brokerage and discount expenses - HELD THAT:- In consonance with the view taken in Assessment Year 2017-18 2024 (1) TMI 157 - ITAT DELHI] the impugned additions made on account of commission, brokerage, discount expenses is not sustainable in law and facts. Disallowance u/s 14A - As pointed out assessee has declared exempt income by way of dividend to the extent of Rs. 6,97,835/- while suo motu disallowance itself stands at Rs. 7,30,000/- which is in excess of exempt income - HELD THAT:- As in Assessment Year 2017-18 2024 (1) TMI 157 - ITAT DELHI] it is well settled law that disallowance under Section 14A can be made only in respect of those investments which have yielded tax free income during the year as held in Caraf Builders [2018 (12) TMI 410 - DELHI HIGH COURT] and ACB India Ltd.[2015 (4) TMI 224 - DELHI HIGH COURT] - The AO is thus directed to delete the disallowance under Section 14A made over and above the disallowance offered by the assessee. Disallowance of ESOP expenditure - HELD THAT:- As decided in Assessment Year 2017-18 [2024 (1) TMI 157 - ITAT DELHI] addition made towards ESOP expenses are allowed as held expenses are incurred with a view to retain the talent / staff for the benefit of the company and consequently such expenses are allowable as business expenditure. TP Adjustment on account of commission on standby letter of credit - HELD THAT:- As identical issue in assessee’s own case in Assessment Year 2017-18 [2024 (1) TMI 157 - ITAT DELHI] wherein held as no cost has been borne by the assessee company and in the absence of any rebuttal to the assertion that actual bank commission charges incurred has been fully recovered from the AEs, we hardly see any justification in the Transfer Pricing Adjustment on this score. We thus are not inclined to address the alternative plea of excessive estimation.
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