2022 (3) TMI 1536 - ITAT CUTTACK

Bogus LTCG - Addition u/s 68 - HELD THAT:- We found that the findings of the revenue authorities are not justified and are irrational, they have deliberated the matter without due application of mind, identity of the investor had duly disclosed by the assessee and identified by the AO, all the transactions were through proper banking channel, no cash deposit was found as alleged by the AO, assessee has discharged its duty by providing all the relevant material required for the investigation. Therefore, application of section 68 of the income tax act in the instant case is not reasonable and uncalled-for.

Disallowance of Belated remittance of EPF contributions - statutory dues paid after the due date but before filing of the ITR u/s 139(10) - HELD THAT:- Employer’s contribution admittedly paid before the date of filing of return is allowable u/s 43B.

As in the present case which is for the asst. year 2013-14, it is an undisputed fact that the Employees contribution for EPF was duly deposited by the Assessee Company before the due date of filing of return u/s 139(1) - The year under consideration is also before the effective date (01.04.2021, AY 2021-22 onwards) of the amended provision by Finance Bill 2021. Accordingly, disallowance could not be made in respect of PF/ESI paid within the due date of filing return of income. Appeal of the assessee is allowed to this extent.

Disallowance of Capital Expenditure - HELD THAT:- As assessee has failed to provide required information regarding construction of the temporary hutments, however, if it is proved that such structures were constructed on temporary basis and were used for the purpose of business of the assessee, a deduction of expenditure will be allowable, if the same is revenue in nature or depreciation would be allowed if the same is capital in nature. 100% disallowance without disputing the actual incurrence of the expenditure which is used for the purpose of the business of the assessee is unwarranted and bad in law. Therefore, this Ground of appeal is directed to restore back to files of AO to reassess the same.