Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (6) TMI 661 - AT - Income TaxDisallowance u/s 14A - HELD THAT:- We find that the Co–ordinate Bench of the Tribunal in assessee’s own case in assessment year 2015–16, has decided the issue of disallowance under section 14A of the Act [2021 (2) TMI 608 - ITAT MUMBAI] wherein the issue has been decided in favour of the assessee and against the Revenue. Disallowance of payment for non-compliance with RBI norms on KYC and under Information Technology Act treating the same as falling under Explanation-l to section 37(1) - HELD THAT:- We find that the Co–ordinate Bench of the Tribunal in assessee’s own case [2021 (2) TMI 608 - ITAT MUMBAI] has decided the issue of disallowance under section 37(1) wherein issue has been decided in favour of the assessee and against the Revenue by deleting the disallowance made by the Assessing Officer. Addition of non–monetary perquisite in computing book profits under section 115JB - HELD THAT:- We find that the Co–ordinate Bench of the Tribunal in assessee’s own case [2021 (2) TMI 608 - ITAT MUMBAI] decided issue in favour of the assessee and against the Revenue by deleting the disallowance made by the Assessing Officer. Education cess and higher and secondary education cess - whether taxable as the same is covered under section 40(a)(ii) of the Act and accordingly allowable as deduction in computing the income from business or profession - HELD THAT:- We find that the issue raised by way of additional ground is squarely covered in favour of the assessee and against the Revenue by the decision of Sesa Goa Ltd. v/s JCIT, [2020 (3) TMI 347 - BOMBAY HIGH COURT] and Chambal Fertilizers & Chemicals Ltd. [2018 (10) TMI 589 - RAJASTHAN HIGH COURT]. Respectfully following the aforesaid judicial pronouncements, we set aside the impugned order of the learned Commissioner (Appeals) and allow the additional ground raised by the assessee. Disallowance towards year end provision for expenses on which TDS was not deducted - HELD THAT:- We find that identical issue relating to deletion of disallowance towards year end provision for expenses on which TDS was not deducted, has been decided by the Co–ordinate Bench in an appeal filed by the Revenue [2021 (2) TMI 608 - ITAT MUMBAI] for assessment year 2015–16, decided this issue against the Revenue and in favour of the assessee. Disallowance on account of provisions for expenses and write–off - AO added the said amount both under normal provisions as well as under section 115JB - Commissioner (Appeals) observed that the Assessing Officer did not find any justification in deletion of disallowance made by the Assessing Officer and, hence, allowed the claim of the assessee - HELD THAT:- We find that the assessee has debited the amount of ₹ 817,81,448, as part of other provisions for expenses amounting to ₹ 26,80,85,106 in the Profit & Loss Account and in the computation of book profit, it has added back the entire amount of ₹ 26,80,81,106 and being shown as provisions and has claimed the deduction of ₹ 817,81,448/-, being in the nature of expenses. We do not find any cogent reason to disturb the findings of the learned CIT(A) in observing that the said amount of ₹ 817,81,448/- is not in the nature of provision but are in the nature of allowable expenditure relating to running of business and relatable risk involved. The write–off of loss due to theft of jewellery in one of the branches and write–off of various charges relating to loan recovery expenses will fall within the banking business loss / expenses. Therefore, we decline to interfere warranting any interference at the instance of the Revenue.
|