GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
What's New Case Laws Highlights Articles News Forum Short Notes Statutory TMI SMS More ...
Extracts
Home List
← Previous Next →

2015 (9) TMI 225 - ITAT AHMEDABAD

2015 (9) TMI 225 - ITAT AHMEDABAD - TMI - Disallowance u/s 40(a)(ia) - Non deduction of TDS u/s 194J - tax deducted under wrong provision - CIT(A) deleted disallowance - Held that:- The issue under consideration is squarely covered in favour of assessee by the decision of CIT(A) vs. M/s. S. K. Tekriwal [2012 (12) TMI 873 - CALCUTTA HIGH COURT ] wherein the assessee deducted tax u/s. 194C of the Income Tax Act. According to the Assessing Officer, the tax should have been deducted u/s. 194I. He, 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

dering the fact that any expense in connection with closed business is not an allowable deduction u/s. 43B - Held that:- The only ground on which the disallowance of the payment of tax was made was the presumption of the Assessing Officer that the business was closed. After the order of CIT(A), there remains no dispute that the business was not closed but such business was leased out by the assessee and the rental income was assessed under the head ‘income from business’. In view of above, we do .....

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 under consideration, then persons who achieved the target given by the assessee have acquired the right to go on tour as per the Scheme of assessee. Therefore, once the assessee’s clients, commission agents and Engineers fulfill the target given to them, the assessee incurs the liability to take them on tour to Egypt as per the Scheme. Therefore, the provision for Egypt tour is to be allowed in the year under consideration.- Decided in favour of assessee.

Responsibility of claim 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

No. 1473/Ahd/2011 - Dated:- 26-8-2015 - SHRI G. D. AGRAWAL AND SHRI S. S. GODARA, JJ. For The Revenue : Shri Dinesh Singh, Sr. D.R. For The Assessee : Shri M. R. Patel, A.R ORDER PER G.D. AGRAWAL, VICE PRESIDENT These cross appeals by Revenue and assessee are directed against the order of learned CIT(Appeals)-IV, Baroda, dated 01/04/2011 for A.Y. 2007-08. ITA No. 1472/Ahd/2011 (Revenue s appeal) 2. The ground no.1 of the Revenue s appeal reads as under: 1. On the facts and in the circumstances 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

yment made by the assessee was ₹ 49,84,111/-. Since, as per Assessing Officer, assessee deducted the tax at a lower rate , he disallowed 3/5th of the payment u/s.40(a)(ia). On appeal, the CIT(A) deleted the addition on the ground that the tax has already been deducted u/s.194C and if in the opinion of Assessing Officer tax deduction at source was at a lower rate, the Assessing Officer could have taken the action u/s.201 of the Income Tax Act. In the opinion of CIT(A) for deduction of tax 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

to the Assessing Officer, the tax should have been deducted u/s. 194I. He, therefore, made proportionate disallowance u/s.40(a)(ia). The Tribunal held that where tax has been deducted by assessee, though under the wrong provisions, the provision of Section 40(a)(ia) cannot be invoked and Revenue can initiate proceedings u/s.201 for short fall in deduction of tax at source. On appeal, the Hon ble Calcutta High Court upheld the order of CIT(A). We find that facts in the case under appeal are ident .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ction 43B of the Act without considering the fact that any expense in connection with closed business is not an allowable deduction u/s. 43B of the Act. 7. The facts of the case are that the Assessing Officer disallowed a sum of ₹ 11,11,534/- out of notified area tax liability paid by the assessee on the ground that it was pertinent to the business of Kaniska Sttel Unit, which was closed during year under consideration. On appeal, the CIT(A) recorded the finding that such business was 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

spute that the business was not closed but such business was leased out by the assessee and the rental income was assessed under the head income from business . In view of above, we do not find any infirmity in the order of CIT(A). The same is sustained and ground no.3 of the Revenue s appeal is dismissed. ITA No. 1473/Ahd/2011 (Assessee s appeal) 9. Concised ground nos.1 & 2 of the assessee s appeal read as under: 1. That, on facts and in law, the learned CIT(A) has grievously erred in conf .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

achieved the target were entitled to Egypt tour. That on the basis of performance, during the accounting year relevant to assessment year under consideration tour was arranged next year. That the Assessing Officer disallowed the provision made towards the tour expenses on the only ground that the liability has not been accrued because the tour was actually arranged in the next year. He stated that the tour was on the basis of performance of the assessee s clients, sub commission agents, Engineer .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

act that the expenditure was incurred for the purpose of business was not disputed then necessary direction be given to Assessing Officer to allow the expenses either for the year under consideration or in the next year. Ld. DR, on the other hand, relied upon the order of authorities below and he stated that neither the liability had accrued during the year nor the expenditure was actually incurred. The assessee claimed expenses simply on the basis of the provision made simply on estimate. He, 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

it has gone to ₹ 26,90,730/- compared to last year's figure of ₹ 1,86,961. It was further explained that the assessee has arranged one tour to Egypt for its valued clients, sub commission agents, and engineers and due to which the sale promotion expenses of all the branches taken together has increased from 3.08 lac to 28.23 lacs. 3.3 The assessee has also furnished the photocopy of journal vouchers. On perusal of the said voucher it is found that the journal voucher was created .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

oice of Orbit Corporate dated 22.5.2007 reveals that it was for air fare taxes, visa charges, arrangement charges, claim charges for 68 persons. Thus the invoice, the payment, the actual trip and everything took place in the subsequent year. 3.5 On perusal of the aforesaid facts, it is found the amount of ₹ 24,88,000/- represents merely a provision as on 31.3.2007. The tour was arranged in the subsequent year. The said provision was made on ad-hoc basis and the liability has not accrued in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

othing but merely a contingent liability and the same cannot be allowed. Penalty proceeding under section 271(l)(c) is initiated separately as the assessee has furnished inaccurate particulars of its income by claiming a liability which has not accrued and crystallized during the year. From the above, it is evident that the Assessing Officer has not doubted that tour was to be arranged by assessee as a part of Sales Promotion expenses. He disallowed the expenses mainly on the ground that there 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

 

 

 

 

 

Advanced Search


Latest Notifications:

    Dated      Category

20-7-2017 Cus (NT)

20-7-2017 IT

20-7-2017 GST CESS Rate

19-7-2017 IT

19-7-2017 IT

18-7-2017 IT

18-7-2017 CE (NT)

18-7-2017 CE

18-7-2017 GST CESS Rate

15-7-2017 Kerala SGST

14-7-2017 Andhra Pradesh SGST

14-7-2017 Cus (NT)

14-7-2017 Cus

13-7-2017 Co. Law

13-7-2017 Co. Law

13-7-2017 ADD

13-7-2017 ADD

12-7-2017 Jammu & Kashmir SGST

12-7-2017 Gujarat SGST

12-7-2017 Gujarat SGST

More Notifications


Latest Circulars:

21-7-2017 Goods and Services Tax

20-7-2017 Goods and Services Tax

20-7-2017 Goods and Services Tax

19-7-2017 Goods and Services Tax

19-7-2017 Income Tax

18-7-2017 Customs

17-7-2017 Customs

14-7-2017 Income Tax

13-7-2017 Central Excise

13-7-2017 Customs

More Circulars



|| 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