Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (1) TMI 39 - AT - Income TaxTDS credit - CIT(A) directing the AO to verify the TDS credit instead of allowing the same - HELD THAT:- Since the AO has not given credit of the tax paid at Rs.3,20,21,101/- and given credit of Rs.3,19,78,883/- only without assigning any reason, the assessee preferred appeal before the ld.CIT(A) who directed the AO to verify the taxes paid and give credit accordingly. We do not find any infirmity in the order of the ld.CIT(A) on this issue. Since, the ld.CIT(A) has directed the AO to verify the taxes paid and give appropriate credit and since it is the apprehension of ld.AR that the ld.CIT(A) has no power to set aside an issue and therefore, the AO may not follow his direction, therefore, we direct the AO to verify the record and give due credit of the taxes paid by the assessee in shape of TDS, advance tax and self-assessment tax. The ground raised by the assessee on this issue is accordingly allowed for statistical purposes. Addition being the income underreported and treated the same as income of the assessee for AY 2014-15 - excess receipts over the income reported in P&L account on interest received - HELD THAT:- As submitted assessee is following mercantile system of accounting and has duly filed the reconciliation statement. It is his submission that due to misunderstanding by the AO, he could not appreciate the system of accounting consistently followed by the assessee and made the addition. It is also his submission that given an opportunity, the assessee is in a position to substantiate with evidence to the satisfaction of the AO that such income has already been offered to tax in subsequent years and the method of accounting consistently followed by the assessee has been accepted by the revenue and therefore, no addition should be made in this year. Considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the AO with a direction to verify from the record the method of accounting consistently being followed by the assessee and pass appropriate order as per fact and law. The second additional ground raised by the assessee is accordingly allowed for statistical purposes. Nature of expenses - foreign exchange loss treated as capital expenditure and allow depreciation on the same instead of revenue expenditure as claimed by the assessee - HELD THAT:- Hon’ble Supreme Court in the case of the CIT vs. Woodward Governor India (P.) Ltd. [2009 (4) TMI 4 - SUPREME COURT] has held that loss suffered by the assessee on account of the exchange difference as on the date of the balance sheet is an item of expenditure u/s. 37(1). We are of the considered opinion that the foreign exchange fluctuation loss on account of restatement of loan taken from Indusind bank for purchase of building at Chennai from M/s.Shriram Ventures Ltd. has to be allowed as revenue expenditure. We hold and direct accordingly.
|