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2015 (10) TMI 1706 - ITAT DELHI

2015 (10) TMI 1706 - ITAT DELHI - TMI - Addition on account of foreign traveling expenses - Held that:- As decided in assessee's earlier AYs after considering the facts of the case as well as various details submitted by A.R. before the A.O. as well as the arguments made by him, inclined to agree with the arguments of the A.R. that there was no justification for making this disallowance. Accordingly the AO is directed to delete this addition since they have been already reflected in From No. 16 .....

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provision for gratuity and leave encashment made by the assessee are held to be fully explained or sustainable and the same is allowable as per ratio laid down by the Hon’ble Apex Court in the case of Rotork Controls (2009 (5) TMI 16 - SUPREME COURT OF INDIA). Accordingly, we are unable to see any infirmity or any other valid reason to interfere with the impugned order and we upheld the same. Accordingly, sole ground of the Revenue being devoid of merits being dismissed.- Decided in favour of as .....

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the case in deleting the addition of ₹ 9,79,329/- made by the AO on account of foreign travelling expenses. 2. On the facts and circumstances of the case of the Ld. CIT(A) erred in law and merits of the case in deleting the addition of ₹ 26,97,000/- made by the AO on account of provision of gratuity and leave encashment. 3. The appellant craves, leave or reserving the right to amend, modify, alter, add or forego any ground(s) of appeal at any time before or during the hearing of thi .....

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t. Ltd. Delhi and the issue no. 2 relating to addition on account of provision of gratuity and leave encashment has been decided by the ITAT, Delhi Bench G , New Delhi in assessee s own case for the asstt. year 2008-09 passed in ITA No. 5808/Del/2013 vide order dated 20.5.2015 titled as DCIT vs. Sage Metals Ltd. Accordingly, he requested that following the aforesaid decisions in assessee s own case relevant for the assessment year 2008-09, the issues involved in the present appeal for the asstt. .....

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ated 30.9.2014 relating to issue of disallowance of foreign travelling expenses read as under:- 4. We have heard rival parties and have gone through the material placed on record. We find that the expenses disallowed by the A.O. no doubt relate to foreign travel expenses of the wife and children of the Directors of the company but as per the findings of Ld. CIT(A) these expenses were part of remuneration package of the Directors and as per Form 16, the same were added in the income of the direct .....

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ackage approved by the Board of Directors of the Company. As a result, this ground is treated as allowed. 5. We do not find any infirmity in the findings of the Ld. CIT(A) and therefore, the order of the Ld. CIT(A) is upheld. 6. In view of the above, the appeal filed by the Revenue is dismissed. 5.1 Respectfully following the above precedent of the Coordinate Bench in assessee s own case, the issue involved in ground no. 1 is decided against the Revenue and in favour of the assessee and this gro .....

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or A.Y. 2008-09 passed u/s 154 of the Income Tax Act, 1961 (for short the Act). 4. The ld. Departmental Representative (DR) pointed out that the CIT(A) in his order dated 21/08/2013 passed u/s 154 of the Act deleted the addition made on account of provision for Gratuity and leave encashment on unjustified and incorrect premise. Therefore, the same may be set aside by restoring that of the AO on this issue. 5. The ld. Counsel of the assessee drawn our attention towards order of the CIT(A) passed .....

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uarely covered in favour of the assessee by the decision of Hon ble Supreme Court in the case of Rotork Controls Ltd. vs. CIT, 314 ITR 62 (SC). The ld. Counsel pointed out that the CIT(A) in the original order dated 12/07/2013 dimissed the ground no. 2 of the assessee ignoring the relevant facts of the case which was subsequently rectified by passing impugned order u/s 154 of the Act and the same is sustainable. 6. On careful consideration of above sumissions from the order of the CIT(A) passed .....

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dology and certified by a specialist. This aspect has also been mentioned itself in the body of the appellate order. In view of these facts, the issue is clearly covered in favour of the appellant by the decisions of Rotork Controls Ltd. 314 ITR (SC) and, therefore, it appears to be a mistake apparent from record. 3. After considering the rectification application of the AR as well as the details in the appellate order, it appears that through oversight this aspect has not been adjudicated by co .....

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ered by the Apex Court judgment. 7. In view of above, we are inclined to hold that since the provision for gratuity and leave encashment were fully explained by the assessee before the authorities below and the ld. CIT(A) also recorded that the provision was computed on the basis of scientific methodology and also certified by the actuarial specialist. Under above noted facts, we respectfully follow the decision of Hon ble Supreme Court in the case of Rotork Controls India Pvt. Ltd. (supra), whe .....

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