TMI Blog2012 (7) TMI 155X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to be credited only on receipt basis - in favour of assessee. Disallowance being amount deducted as TDS on payments in respect of charges for services - Held that:- That amount paid was only to the discharge of the liability which liability the assessee had taken to pay as part of the agreement entered into. The amount so paid as tax has been held to be the amount payable between the collaborator and the assessee - against assessee. - ITA Nos. 4882, 2475, 6527/Mum/2010 - - - Dated:- 20-6-2012 - B R Mittal, N K Billaiya, JJ. For Appellant: Shri Satbir Singh For Respondent: Shri D.H. Shah ORDER Per: N K Billaiya: The Revenue has filed these three appeals for assessment years 2003- 04 to 2005-06 against the orders ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ebt should be written off in the books of accounts. 7. Before us, the Ld. Departmental Representative relied upon the findings of AO and submitted that the findings of the Ld. CIT(A) are erroneous. Ld AR reiterated the stand taken before the CIT [A]. 8. We have heard the rival submissions. We find that the AO has not given any reason for disallowing the claim. We also find that the AO has simply followed the findings of earlier assessment years. As similar additions in earlier assessment year has been deleted by Ld. CIT(A) which has been accepted by the Revenue as Committee on Dispute declined to give permission to the department to proceed with the appeal , findings of the Ld. CIT(A) become final. As Ld. CIT(A) has rightly pointed out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O followed the earlier year assessment, found that for the year under consideration assessee has categorized the sum of Rs. 1,66,98,110/- as non performing assets (NPA). As the assessee has not written off the debts, the AO charged interest at the rate of 2.85% per month which is the average rate of interest during the year under consideration and treated the same as income of the assessee and added to the total income at Rs. 57,10,754/-. 10. Before the Ld. CIT(A) the assessee challenged this addition. The main contention of the assessee was that assessee being a non banking finance company is bound to follow the guidelines of Reserve Bank of India according to which Non banking finance company are not required to credit interest on NPA o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the tune of Rs. 36,37,533/- which was claimed by the assessee as deduction in the Profit Loss Account. The AO sought explanation from the assessee and pointed out why this sum being TDS should not be disallowed as the same is not a liability of the assessee. The assessee pointed out that as per agreement with Visa Master Card International, the assessee was required to bear the tax liability of these companies. However, this contention of the assessee did not find favour with AO who was of the opinion that this payment was not an expenditure of the assessee as the same is not incurred for the assessee s business. 15. When the matter was agitated before the Ld. CIT(A), CIT(A) after considering the submissions and agreement held tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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