TMI Blog2013 (11) TMI 318X X X X Extracts X X X X X X X X Extracts X X X X ..... a Laval India Ltd. (Supra) – Matter restored to the file of AO. Addition on account of arrears of depreciation while computing the book profit u/s 115JB of the Income Tax Act – Held that:- Reliance has been placed on judgment of Hon’ble High Court of Bombay in case of Kinetic Motor Company Ltd. [2003 (1) TMI 47 - BOMBAY High Court], wherein it was held that the accounts prepared and certified in accordance with part 2 and part 3 of schedule VI of the companies Act could not be tinkered with and AO had no jurisdiction to go beyond the net profit shown in the such accounts – Therefore, such addition was deleted – Decided against the Revenue. - ITA No.3261/Mum/2009 , ITA No.1664,2089/Mum/2010 - - - Dated:- 13-9-2013 - R K Gupta And Raj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... him that several other employees of equivalent or senior position had also visited many foreign countries without their spouses. He also referred to the judgment of Hon ble High Court of Gujarat in case of Bombay Minerals Supply Company (153 ITR 437), the judgment of Hon ble High Court of Allahabad (110 ITR 855) and the judgment of Hon ble High Court of Madras (153 ITR 422) in which expenditure incurred on travel of wives was not held allowable. AO, therefore, disallowed the claim of expenditure. 2.2 In appeal, CIT(A) observed that similar claim had been allowed by the Tribunal in assessment year 1996-97 and 1997-98 in ITA no.s 4625 and 4626/Mum/2004. He, therefore, allowed the claim of the assessee, aggrieved by which the revenue is in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td. (282 ITR 445) have held that the expenditure on foreign travel of Director s wife may be allowed depending upon the status of the parties, nature and character of trade or venture, the purpose for which the expenditures were incurred and the objects sought to be achieved by incurring such expenses. It is, therefore, required to be examined as to what was the purpose of visit and how the visits of the wives was required for the purpose of business. In our view the issue requires examination in the light of judgment of Hon ble High Court of Bombay in case of Alfa Laval India Ltd. (Supra). Similar issue has also been restored to the file of AO in assessment year 2003-04. We, therefore, set aside the order of CIT(A) and restore the matter t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the auditors of the company and accepted at the AGM, the AO had no power to tinker with the account so maintained as held by Hon ble Supreme Court in case of Apollo Tyres Ltd Vs. CIT (Supra). He, therefore, direct the AO to delete the addition, aggrieved by which the revenue is in appeal before Tribunal. 4.2 We have heard both the parties, perused the records and considered the matter carefully. The dispute is regarding adjustment made by AO on account of arrears of depreciation relating to earlier years debited to the P L Account of the current year. We find that the same issue has already been considered by the Tribunal in assessee s own case in assessment year 2004-05 in ITA No. 1454/Mum/2008 . In that year also the AO had made ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot accept the arguments advanced. It was observed by him that the penalties had been levied for infraction of various laws and, therefore, were hit by the Explanation to section 37(1) and were not allowable as deduction. He, therefore, disallowed the claim which in appeal was confirmed by the CIT(A). aggrieved by which the assessee is in appeal before Tribunal. 5.2 At the time of hearing, the learned AR for the assessee did not press this ground due smallness of amount involved. The ground is, therefore, dismissed as not pressed. 6. The second dispute is regarding disallowance of mining lease expenses. The assessee had incurred total expenditure of Rs. 16,23,610/- on stamp duty and as mining lease registration charges. The assessee had cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 We have perused the records and considered the matter carefully. The assessee had claimed credit for TCS of Rs. 2,49,34,702/- The AO however had allowed credit of Rs. 2,48,74,045/-. The assessee has requested for the credit of balance amount. In our view the credit for TCS has to be given to the assessee if proper evidence for such collection of tax at source is given by the assessee. We, therefore direct the AO to allow the credit if the assessee produces necessary evidences to support the collection of tax at source. 8. The appeal of the revenue in ITA no. 2089/Mum/2010 for assessment year 2006-07. The revenue has raised disputes on only one ground which relates to disallowance of various travel expenses of the wife of Chairman of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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