Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

The D.C.I.T., Circle-1 (2) , Baroda And Others Versus Jyoti Ltd. Nanubhai Amin And Others

2015 (7) TMI 84 - ITAT AHMEDABAD

Disallowance employees' (staff) contribution to Provident Fund which were not paid on due dates - CIT(A) deleted the addition - Held that:- The contribution of provident fund and ESIC not being paid before the due dates and in the absence of any contrary binding decision and respectfully following the decision of Hon’ble Gujarat High Court in the case of CIT vs. Gujarat State Road Transport Corporation (2014 (1) TMI 502 - GUJARAT HIGH COURT) we set aside the order of ld. CIT(A) on this issue and .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s also covered in Assessee’s favour by the decision of Hon’ble Gujarat High Court in the case of CIT vs. Bhogilal Ramjibhai Atara (2014 (2) TMI 794 - GUJARAT HIGH COURT). Before us, Revenue has not brought any material on record to controvert the findings of ld. CIT(A) nor has brought any contrary binding decision in its support. In view of the aforesaid facts, we find no reason to interfere with the order of ld. CIT(A) - Decided against revenue.

Addition on account of welfare expense .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

er of ld. CIT(A) for A.Y. 2000-01 that was relied by ld. CIT(A) for deciding the present ground has been accepted by Revenue and attained finality, then no interference to the order of ld. CIT(A) for the year under consideration is called for. In case the order of ld.CIT(A) for A.Y. 2000-01 has been decided at a higher forum, ld. CIT(A) is directed to follow the same. - Decided in favour of revenue for statistical purposes.

Addition of miscellaneous expenses - CIT(A) deleted the addit .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

to any controvert the findings of ld. CIT(A) nor has pointed out any contrary binding decision. In view of the aforesaid facts, we find no reason to interfere with the order of ld. CIT(A) - Decided against revenue.

Disallowance of bad debts - CIT(A) deleted the addition - Held that:- The issue in the present case is with respect to writing off of bad debts. We find that Hon’ble Supreme Court in the case of TRF Ltd. vs. CIT (2010 (2) TMI 211 - SUPREME COURT) has held as under:- "After .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

.

Addition on account of repairs to building - Held that:- We find that ld. CIT(A) while upholding the addition has by a very cryptic order upheld the order of A.O. We further find that there is no finding of ld. CIT(A) with respect to the nature of expenses incurred by the Assessee. In such circumstances, we are of the view that the issue needs to be reconsidered and therefore we remit the issue back to the file of ld. CIT(A) to decide the issue afresh after giving a clear finding on .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s different from OYT scheme which was relied upon by Assessee. In such circumstance, we are of the view that the issue needs to be re-examined in the light of the submissions made by ld. A.R, the case law relied upon by ld. A.R. and on the basis of facts and circumstances of the case. Ld. CIT(A) shall give a categorical finding with respect to the nature of expense. The Assessee is also directed to co-operate by furnishing all the required details called for by ld. CIT(A). - Decided in favour of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ing Company vs. CIT (2001 (7) TMI 70 - GUJARAT High Court). Considering the fact that ld. A.R. has also placed reliance on the decision of Sayaji Iron (supra) and in the absence of any finding by ld. CIT(A) on the nature of expenses and in the light of the aforesaid decision of Gujarat High Court which has been relied upon by ld A.R., we are of the view that the issue needs to be re-examined in the light of the aforesaid decision and in accordance with law. We therefore set aside the issue back .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

allowed as deduction in the previous year in which sum is actually paid by the Assessee. We further find that Explanation 3D has been inserted by Finance Act, 2006 with retrospective effect from 01.04.1997 and the Explanation 3D states that for the removal of doubt it is declared that the deduction, being interest payable, shall be allowed if such interest has been actually paid and any interest referred to in clause (e) which has been converted into a loan or advance shall not be deemed to hav .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

-2015 - Shri Shailendra Kr. Yadav, J.M. And Shri Anil Chaturvedi, A.M.,JJ. For the Appellant : Shri B.L. Yadav, Sr. D.R. For the Respondent : Shri J.P. Shah, A.R. ORDER Per Shri Anil Chaturvedi, A. M. 1. These 6 appeals of which 3 are filed by the Assessee and the other 3 are filed by the Revenue, are against the order of CIT(A)-IV, Baroda dated 17.03.2010 for A.Ys. 2005-06 to 2007-08. 2. Before us, at the outset both the parties submitted that though the appeals relate to 3 different assessment .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

acturing of engineering goods. Assessee filed its return of income for A.Y. 2005-06 on 29.10.2005 declaring total loss of ₹ 1,25,95,376/-. The case was selected for scrutiny and thereafter the assessment was framed under section 143(3) vide order dated 30.04.2007 and the total income, before adjustment of carry forward unabsorbed business loss, was determined at ₹ 2,93,00,155/-. Aggrieved by the order of A.O., Assessee carried the matter before ld. CIT(A) who vide order dated 17.03.2 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Appeals) erred in deleting the additions of ₹ 59,25,030/- made on account of disallowance employees' (workers) contribution to Provident Fund which were not paid on due dates. l(c). The Id.CIT(Appeals) erred in deleting the additions of ₹ 10,29,515/- made on account of disallowance employees' contribution to ESI which were not paid on due dates. 1(d) The Id.CIT(Appeals) erred in not appreciating that under the provisions of section 36(l)(va) r.w.s.2(24)(x) of the Act disallow .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

not survive as the period of 3 years as being agitation period had elapsed in view of the decision in the case of CIT vs Chaudhary Cotton Ginning & Pressing Factory, 2005, 271 ITR 17 (PH). 3. On the facts and in the circumstances of the case and in law, the Id.CIT(Appeals) erred in deleting the addition made on account of disallowance out of welfare expenses of ₹ 4,83,380/- as the assessee has failed to establish that the entire expense was incurred for business purpose. 4. On the fac .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tion on account of Employees Contribution Fund and ESIC. 5. During the course of assessment proceedings, A.O noticed that the employees contribution to provident fund and ESIC was not paid by the Assessee though it had become payable on the various due dates. He accordingly disallowed the employees contribution of provident fund of staff of ₹ 45,78,683/-, contribution of Provident Fund of ₹ 59,25,030/- and ESIC contribution of ₹ 10,29,515/-. Aggrieved by the order of A.O., Asse .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d Scheme imposes obligation on the employer to remit both the shares of contribution, i.e. employer's as well as employees' in the first instance. The ITAT noted that initial responsibility for making payment of contribution lies on the employer irrespective of the fact whether the wages are paid in time or not. Appellant's contention that provisions of section 2(24)(x) are not applicable due to salary payment being late is therefore not acceptable. However, in view of Supreme Court& .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

owards provident fund, if made within the due date of filing of return is allowable as a deduction. The Supreme Court in the decision of Alom Extrusions Ltd. held that first proviso to section 43B is applicable even before amendment in section 43B by Finance At, 2003. The Supreme Court in para 10 of its Order referred to employees' contributions also. Following these decisions, it is held that employees' contribution to PF and ESIC, if paid before due date of filing the return are allowa .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ujarat State Road Transport Corporation 366 ITR 170 and therefore the issue has to be decided against the Assessee. Ld. D.R. agreed with the submission of ld. A.R. 8. We have heard the rival submissions and perused the material on record. It is an undisputed fact that the employees contribution of P.F and ESIC has been deposited late by the Assessee. Hon ble Gujarat High Court in the case of CIT vs. Gujarat State Road Transport Corporation (supra) has held has under:- "any sum with respect .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

cation issued thereunder or under any Standing Order, Award, Contract or Service or otherwise. .." 9. In view of the submission of ld. A.R. and D.R. and in view of the fact that the contribution of provident fund and ESIC not being paid before the due dates and in the absence of any contrary binding decision and respectfully following the decision of Hon ble Gujarat High Court in the case of CIT vs. Gujarat State Road Transport Corporation (supra) we set aside the order of ld. CIT(A) on thi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

eriod within which any claim for recovery of debt is required to be enforced, and since that period has elapsed, the liability shown by the Assessee being payable to those creditors has ceased to exist. He accordingly made addition of ₹ 5,39,217/- Aggrieved by the order of A.O., Assessee carried the matter before ld. CIT(A) who after considering the submissions of the Assessee decided the issue in favour of the Assessee by holding as under:- 4.2. I have considered the matter. Amounts were .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

that the assessee had no intention of honouring the debts after writing them back, no profit could be said to accrue. The decision relied upon by the Assessing Officer in the case of Chaudhary Cotton Ginning &. Pressing Factory is in a different context altogether and is not applicable. Addition of ₹ 5,39,217/- u/s.41(l) is deleted. 11. Aggrieved by the order of ld. CIT(A), Revenue is now in appeal before us. 12. Before us, ld. D.R. relied on the order of A.O. On the other hand ld. A. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

have heard the rival submissions and perused the material on record. We find that ld. CIT(A) while deleting the addition has noted that the amounts outstanding in the Assessee s Balance Sheet were considered as liability by the Assessee and in the absence of any material suggesting that the Assessee had no intention of honoring the debts, no profit could be said to accrue. We further find that the issue in the present case is also covered in Assessee s favour by the decision of Hon ble Gujarat .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

, A.O noticed that the expenses debited to welfare expenses included expenses in respect of grocery, pulses and other requirement to run the canteen. He also noticed that the canteen facility provided to the employees of the Assessee could have been used by other than employees also and therefore he was of the view that the outsiders enjoying the facility of canteen cannot be ruled out. He therefore considered 10% of such expense amounting to ₹ 3,19,015/- as being not wholly and exclusivel .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

matter. Identical disallowance in appellant's case was cancelled by CIT(A)-I, Baroda for A.Y.2000-01 in CAB/I-0032/2003-04 through Order dated 25.8.2003. Following this decision, disallowance of ₹ 4,83,380/- is cancelled. 15. Aggrieved by the aforesaid order of ld. CIT(A), Revenue is now in appeal before us. 16. Before us, ld. D.R. supported the order of A.O. On the other hand ld. A.R. reiterated the submissions made before A.O and ld. CIT(A). 17. We have heard the rival submissions an .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e order of ld. CIT(A) for A.Y. 2000-01 that was relied by ld. CIT(A) for deciding the present ground has been accepted by Revenue and attained finality, then no interference to the order of ld. CIT(A) for the year under consideration is called for. In case the order of ld.CIT(A) for A.Y. 2000-01 has been decided at a higher forum, ld. CIT(A) is directed to follow the same. Thus this ground of Revenue is allowed for statistical purposes. Ground no. 4 is with respect to deletion of addition of mis .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

wed the same. Aggrieved by the order of A.O., Assessee carried the matter before ld. CIT(A) who deleted the addition by holding as under:- 9.2. I have considered the matter. Following the decision of CIT(A)-I, Baroda for A.Y. 2000-01, where by following appellate orders for earlier years and by noting that adhoc addition in the absence of adverse report by the auditor cannot be sustained, disallowance of ₹ 1,98,164/- is cancelled. 19. Aggrieved by the aforesaid order of ld. CIT(A), Revenue .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

miscellaneous expenses. While disallowing the expenses, he has not pointed out any expenditure which is not for the purpose of business. At the same time, we find that ld. CIT(A) following the decision for A.Y. 2000-01 has also noted that no such disallowance were made in earlier years and ad hoc addition, in the absence of adverse report by the auditor, cannot be sustained. Before us, Revenue has not brought any material on record to any controvert the findings of ld. CIT(A) nor has pointed out .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ions of ₹ 30,65,472/- made on account of disallowance employees' (staff) contribution to Provident Fund which were not paid on due dates. l (b). The Id.CIT(Appeals) erred in deleting the additions of ₹ 21,64,065/- made on account of disallowance employees' (workers) contribution to Provident Fund which were not paid on due dates. l (c). The Id.CIT(Appeals) erred in deleting the additions of ₹ 6,96,502/- made on account of disallowance employees' contribution to ESI .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y the assessee. The Id.CIT(Appeals) erred in not appreciating that the assessee was no longer required to discharge the liability as the claim of the .creditors would not survive as the period of 3 years as being agitation period had elapsed in view of the decision in the case of CIT vs Chaudhary Cotton Ginning & Pressing Factory, 2005, 271 ITR 17 (PH). 3. On the facts and in the circumstances of the case and in law, the Id.CIT(Appeals) erred in deleting the addition made on account of disal .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

incurred for business purpose. 24. Before us, at the outset both the parties submitted that the facts and circumstances of the case in all the grounds raised in the present appeal are identical to the grounds raised by Revenue in its appeal A.Y. 05-06 except for the amounts and the submissions made by them while arguing the appeal for A.Y. 05-06 would be applicable to the present grounds. In view of the aforesaid submissions and for the reasons stated hereinabove while deciding the appeal of Rev .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t of disallowance in respect of payment of ESI employees' contribution. The Id.CIT(Appeals) erred in not appreciating that under the provisions of section 36(l)(va) r.w.s.2(24)(x) of the Act disallowance of the payment of ESI employees contribution beyond the due date is mandatory. 2. On the facts and in the circumstances of the case and in law, the Id.CIT(Appeals) erred in deleting the addition of ₹ 197,117/- in respect of long standing debts owned by the assessee. The Id.CIT(Appeals) .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

4. On the facts and in the circumstances of the case and in law, the Id.CIT(Appeals) erred in deleting the addition of ₹ 3,01,805/- made u/s.37(l) of the Act on account of disallowance out of misc. expense claimed to have incurred for maintenance of garden and guest house as the assessee has failed to establish that the entire expense was incurred for business purpose. 5. On the facts and in the circumstances of the case and in law, the Id.CIT(Appeals) erred in deleting the addition of  .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of Revenue for A.Y. 05-06 would be applicable to the present grounds. In view of the aforesaid submissions and for the reasons stated hereinabove while deciding the appeal for A.Y. 2005-2006 in ITA No. 1921/AHD/2010 (supra) and for similar reasons decide the grounds no. 1 to 4 of Revenue in the present appeal. Ground no. 5 is with respect to deletion of disallowance of bad debts. 28. During the course of assessment proceedings, A.O noticed that Assessee has claimed bad debts of ₹ 49,85,000 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

lowance are identical to A.Y.2006- 07. The bad debts are directed to be allowed after making verification as directed in appellate order for A.Y.2006-07 in appellant's case in CAB/IV-292/09-10 through my Order dated 17.3.2010. 29. Aggrieved by the order of ld. CIT(A), Revenue is now in appeal before us. 30. Before us, ld. D.R. supported the order of A.O. On the other hand ld. A.R. reiterated the submissions made before A.O and ld. CIT(A) and further submitted that ld. CIT(A), following the H .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

vii) of the Income-tax Act, 1961, with effect from April 1 1989, in order to obtain a deduction in relation to bad debts, it is not necessary for the assessee to establish that the debt, in fact, has become irrecoverable, it is enough if the bad debt is written off as irrecoverable in the accounts of the assessee. 32. Before us, Revenue has not brought any contrary binding decision in its support nor has controverted the findings of ld. CIT(A). We therefore respectfully following the decision of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

and circumstances of the case the Learned Commissioner of Income Tax (Appeals)-IV, ought to have allowed the same. Alternatively it is submitted that if the amount is ultimately held be not allowable in the year under reference, the same be directed to be allowed in the year of actual payment. 2. The Learned Commissioner of Income Tax (Appeals)-IV has erred in confirming the revenue expenditure of ₹ 2,85,747/- on repairs to building as capital. On the fact and circumstances of the case the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the payment made by the company towards Credit Card expenses incurred by the director for and on behalf of the company. On the fact and circumstances of the case and in law the Learned Commissioner of Income Tax (Appeals)-IV ought to have allowed the entire expenses. 5. The Learned Commissioner of Income Tax (Appeals)-lV has erred in confirming the addition of ₹ 2,02,97,974/- being interest payment made by the appellant to the bank. On the fact and circumstances of the case and in law the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ismiss the present ground of Assessee. Thus this ground of Assessee is dismissed. 2nd ground is with respect to addition on account of repairs to building. 35. On perusing the details of repairs to building, A.O noticed that a sum of ₹ 1,75,231/- was incurred in respect of labour charges for making and fixing partition with doors, renovation and extending the toilet area and for making storage unit. He also noticed that a sum of ₹ 1,42,310/- was incurred in respect of repairs carried .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

alance amount of ₹ 2,85,787/-. Aggrieved by the order of A.O., Assessee carried the matter before ld. CIT(A) who upheld the order of A.O by holding as under:- 5.2 I have considered the matter. The expenditure incurred brought into existence new assets or it was for substantial renovation. Such an expenditure is of capital nature. Addition of ₹ 2,85,787/- is confirmed. 36. Aggrieved by the aforesaid order of ld. CIT(A), Assessee is now in appeal before us. 37. Before us, ld. A.R. reit .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e heard the rival submissions and perused the material on record. We find that ld. CIT(A) while upholding the addition has by a very cryptic order upheld the order of A.O. We further find that there is no finding of ld. CIT(A) with respect to the nature of expenses incurred by the Assessee. In such circumstances, we are of the view that the issue needs to be reconsidered and therefore we remit the issue back to the file of ld. CIT(A) to decide the issue afresh after giving a clear finding on the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

herefore considered the expenditure to be of capital in nature and accordingly disallowed the amount of ₹ 1,85,508/-. Aggrieved by the order of A.O., Assessee carried the matter before ld. CIT(A) who upheld the order of A.O by holding as under:- 6.2. I have considered the matter. The amount in question is a refundable deposit, which cannot be claimed as an expense. Appellant's contention that the deposit is not likely to be returned at any point of time in future, unless business is cl .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

been acquired and the expenditure has been incurred for the working of the unit. The ld. A.R. also placed reliance on the decision of CIT vs. Gujarat Mineral Development Corporation Ltd 132 ITR 377 (Guj). The ld. D.R. on the other hand supported the order of A.O and ld.CIT(A). 42. We have heard the rival submissions and perused the material on record. We find that ld. CIT(A) while upholding the disallowance made by A.O has noted that the deposit with GEB cannot be compared with deposit under OYT .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

expense. The Assessee is also directed to co-operate by furnishing all the required details called for by ld. CIT(A). In the result, this ground of Assessee is allowed for statistical purposes. Ground no. 4 is with respect to additions of the payments made towards Credit Cards expenses incurred by the Director. 43. During the course of assessment proceedings, A.O noticed that Assessee has reimbursed the expenses incurred by Shri R.N. Amin and Smt. Tejal Amin, the directors of the Assessee compa .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ncurred by Smt. Tejal Amin, aggregating to ₹ 2,61,022/- to be for the non business purpose and accordingly disallowed the same. Aggrieved by the order of A.O., Assessee carried the matter before ld. CIT(A) who upheld the order of A.O by holding as under:- 7.2. I have considered the matter. The details of expenses in the case of Smt. Tejal Amin filed by the appellant show that the expenses were in respect of purely personal items. Such expenses are clearly disallowable in the case of appell .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

, Assessee is now in appeal before us. 45. Before us, ld. A.R. reiterated the submissions made before A.O and ld. CIT(A) and further relied on the decision of Gujarat High Court in the case of Sayaji Iron & Engineering Company vs. CIT 253 ITR 749. The ld. D.R. on the other hand supported the order of A.O and ld.CIT(A). 46. We have heard the rival submissions and perused the material on record. We find that the expenses incurred by the Directors of the Company through Credit Cards were consid .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

resaid decision of Gujarat High Court which has been relied upon by ld A.R., we are of the view that the issue needs to be re-examined in the light of the aforesaid decision and in accordance with law. We therefore set aside the issue back to the file of ld. CIT(A) to decide the issue afresh in accordance with law. Needless to state that CIT(A) shall grant adequate opportunity of hearing to the Assessee. In the result, this ground of Assessee is allowed for statistical purposes. Ground no. 5 is .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

bility was not serviced by the Assessee and had remained unpaid at the end of the financial year and also remained unpaid till the due date of furnishing of return of income. A.O thereafter on detailed analysis of the various accounts ( at page 13 to 20 of the assessment order) was of the view that as per the provisions of Section 43B(e), the interest liability to the extent unpaid cannot be allowed as deduction. He accordingly worked out the amount of disallowance at ₹ 2,02,97,974/- and a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

eparately analyzed appellant's various loan accounts on which interest was paid, i.e. cash credit account, working capital term loan account, term loan account for other purposes and FITL, In respect of all the accounts, Assessing Officer gave credit for interest serviced by the appellant through deposit of sale proceeds or otherwise and disallowed the remaining interest only, which was not paid till the last day of financial year, though it was debited to appellant's accounts by the ban .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d additional term loan titled Funded Interest Term Loan (FITL) and the additional loan sanctioned had nothing to do with interest payable by the appellant on various loans taken earlier, is not correct. Appellant has itself stated that the quantum of additional loan was decided by amount of interest payable by the appellant on earlier loans. Moreover, in letter dated 9.3.2007, Central Bank of India, copy of which is filed by appellant clearly mentioned as under:- "However, in terms of CDR p .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Another contention of the appellant is that entire interest charged by the banks in appellant's accounts was duly taken credit of by them in their profit and loss account and thus, it means interest debited to appellant's account stands serviced. Further contention of the appellant is that due to debiting of interest by the bank to appellant's loan accounts, recovery was made by the bank of the interest. The arguments of the appellant are not acceptable. "Payment" for the p .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

09 by Central Bank of India, Baroda. In these letters, the bank has only certified the amount of interst charged to appellant's accounts, which was taken as income in bank books. As discussed above, this cannot mean that interest was paid by the appellant. Disallowance of ₹ 2,02,97,974/-under section 43B(e) is confirmed 48. Aggrieved by the aforesaid order of ld. CIT(A), Assessee is now in appeal before us. 49. Before us, ld. A.R. reiterated the submissions made before A.O and ld. CIT( .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tion which is relevant for the present issue, reads as under:- 43B. Notwithstanding anything contained n any other provision of this Act, a deduction otherwise allowable under this Act in respect of - (a)……………. (b)……………. (c)……………. (d)……………. (e) any sum payable by the assessee as interest on any loan or advances from a scheduled bank in accordance with the te .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

r before the due date applicable in his case for furnishing the return of income under sub-section (1) of section 139 in respect of the previous year in which the liability to pay such sum was incurred as aforesaid and the evidence of such payment is furnished by the assessee along with such return. Explanation 1………… Explanation 2………… Explanation 3………… Explanation 3A……….. Explanation 3B&helli .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

a schedule bank, in accordance with terms and conditions of the agreement governing such loans or advance, would be allowed as deduction in the previous year in which sum is actually paid by the Assessee. We further find that Explanation 3D has been inserted by Finance Act, 2006 with retrospective effect from 01.04.1997 and the Explanation 3D states that for the removal of doubt it is declared that the deduction, being interest payable, shall be allowed if such interest has been actually paid an .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Before us, ld. A.R. has also relied on the decision of Karnataka High Court in the case of Vinir Engineering Pvt. Ltd. (supra) We are of the view that the ratio of the aforesaid decision would not be applicable to the facts of the present case more so when in that case, the interest was payable to a Finance Corporation and not to a Scheduled Bank and the issue of disallowance was also not with respect to Section 43B(e) of the Act. Thus considering the provisions of the Act in the light of Explan .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

er of Income Tax (Appeals)-IV has erred in confirming partly the payment made by the company towards Credit Card expenses incurred by the director for and on behalf of the company. On the fact and circumstances of the case and in law the Learned Commissioner of Income Tax (Appeals)-IV ought to have allowed the entire expenses. 54. Assessee vide letter dated 27.11.2013 has raised additional ground which reads as under:- The amounts by way of Provident Fund and ESI paid after the due date of the r .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

l for A.Y. 05-06 and the submissions made by them, while arguing the appeal for A.Y. 05-06 would be applicable to the present grounds. In view of the aforesaid submissions and for the reasons stated hereinabove while deciding the appeal for A.Y. 2005-2006 in ITA No. 2010/AHD/2010 (supra) and for similar reasons decide the grounds of Assessee in the present appeal. Thus this ground of Assessee with respect to disallowance of delayed contribution to PF is dismissed and the ground with respect to c .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version