GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (7) TMI 84 - ITAT AHMEDABAD

2015 (7) TMI 84 - ITAT AHMEDABAD - TMI - 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

find that the issue in the present case is 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.

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

o the file of ld. CIT(A). In case the 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. - Decided in favour of revenue for statistical purposes.

Addition of miscella .....

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 has not brought any material on record 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 - S .....

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 of ld. CIT(A).- Decided against revenue.

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 iss .....

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 to how the scheme of deposit with GEB is 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on the decision of Sayaji Iron & Engineering 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 la .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 and any interest referred to in clause (e) which has been converted into a l .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

No. 2010 to 2012 /AHD/2010 - Dated:- 25-6-2015 - 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed to be engaged in the business of manufacturing 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 befor .....

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 paid on due dates. l(b). The Id.CIT(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( .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

lity 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 disallowance out of welfare expenses of ₹ 4,83,380/- as the assessee has failed to establish that the entire expense was inc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

unds are with respect to deletion of addition 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 ₹ 10,29,51 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

, para 30 of Employees' Provident Fund 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 accep .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

, held that employees' contribution towards 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

jarat High Court in the case of CIT vs. Gujarat 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 hel .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

fund Act, ESI Act, Rule, Order or Notification 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 .....

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 of 3 years as being the gestation period 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in the absence of any material suggesting 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 t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

supported the order of ld. CIT(A). 13. We 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 f .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

perusing the details of welfare expenses, 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ng as under:- 8.2. I have considered the 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). 1 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ack to the file of ld. CIT(A). In case the 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 wi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

for non business and accordingly disallowed 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 t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

as made an ad hoc disallowance of 10% of 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 f .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

.CIT(Appeals) erred in deleting the additions 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 disallo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in respect of long standing debts owned by 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 delet .....

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 establish that the entire expense was 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 her .....

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 of ₹ 1,24,821/- made on account 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 o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

pense was incurred for business purpose. 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(Appea .....

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 made by them, while arguing the appeal 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 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

fficer's reasons for making the disallowance 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 s .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

uot;After the amendment of section 36(i)(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 therefo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

id after due date of return. On the fact 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 t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

peals)-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. 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

venue. We therefore for similar reasons dismiss 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/- w .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

mounting to ₹ 31,754/-) added the balance 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 appea .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he order of A.O and ld.CIT(A). 38. We have 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 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

it and advantage of enduring nature. He therefore 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

respect of old unit and no new asset has 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

cal 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). 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 .....

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 Shri R.N. Amin and ₹ 1,12,438/- incurred 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 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

eved by the aforesaid order of ld. CIT(A), 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 .....

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 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 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 f .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

iced that certain portion of interest liability 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 di .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

lar No.7 of 2006. The Assessing Officer separately 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 debit .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nt's contention that it was sanctioned 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

de in respect of such refunded interest. 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed upon letters dated 9.3.2007 and 1.9.2009 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ion of Section 43B along with the Explanation 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ich is actually paid by the assessee on or 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&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

hat interest on any loan or advance from 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 i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ht in disallowing the claim of Assessee. 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 pro .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

eads as under:- 1. The Learned Commissioner 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

milar to ground no. 1 of Assessee s appeal 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 d .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| 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