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2021 (7) TMI 275 - AT - Income TaxAddition on account of amortization of investment - CIT(A) deleted the addition - HELD THAT:- As decided in own case for AYs 2012-13 and 2013-14 and 2006-07 to 2011-12 wherein it has been held that the provisions of sections 28 to 43 of the Act are not Applicable to the case of the appellant where the accounts are to be prepared in accordance with provisions of section 44 read with First Schedule of Income Tax Act, 1961 and I.R.D.A. guidelines (Preparation of financial statements and auditor's report of insurance companies Regulations 2002). Following these decisions all the above additions made are deleted. Interest on TDS u/s. 40(a) - Addition of sum debited under the head 'Miscellaneous expenses' being interest on TDS - CIT(A) deleted the same by following the orders of his predecessors for preceding assessment years - HELD THAT:- In our opinion, interest on TDS is not an allowable expenditure in the light of the decisions of Hon'ble Supreme Court in the case of Bharat Commerce & Industries [1998 (3) TMI 2 - SUPREME COURT] and case of Martin & Harries (P) Ltd. vs. CIT[1989 (7) TMI 342 - CALCUTTA HIGH COURT] - The ground raised by the Revenue on this issue is accordingly allowed. Addition on account of bonus unpaid by invoking the provisions of section 43B - CIT(A) deleted the addition on the ground that identical issue was decided by his predecessors in the preceding so many assessment years - HELD THAT:- As per provisions of section 43B(c) any sum referred to in clause (ii) of sub-section (1) of section 36, payment of bonus shall be allowed as an expenditure on actual payment. Since the assessee admittedly had not paid such bonus before the specified date for which the auditors even have qualified the same, the ld. CIT(A) in our opinion was not justified in deleting the addition. The ground raised by the Revenue is accordingly allowed. Addition on account of leave encashment unpaid u/s. 43B - CIT(A), following the orders of his predecessor for preceding so many assessment years, deleted the addition - HELD THAT:- The order of CIT(A) in our opinion, is not in accordance with law. With effect from 01.04.2002, clause (f) has been inserted in provisions of section 43B according to which any sum payable by the assessee as an employer in lieu of any leave at the credit of his employee shall not be allowed as a deduction in computing the income of the assessee unless such sum is paid. Since the assessee in the instant case has admittedly not paid this sum towards leave encashment, therefore, the Ld. CIT(A) is not justified in allowing the same. Merely because some wrong practice has been followed by the Ld. CIT(A) in the past such wrong cannot be perpetuated. Since the order of the Ld. CIT(A) is not in accordance with law, therefore, the order of Ld. CIT(A) on this issue is set aside.
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