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 →

M/s. Abhishek Exports (India) Pvt. Ltd. Versus The I.T.O., Ward 1 (1) , Surat

2016 (5) TMI 972 - ITAT AHMEDABAD

Addition on account of disallowance out of various expenses of textile division - Held that:- As per Section 170(1), where a person carrying on any business or profession has been succeeded therein by any other person who continues to carry on that business or profession, the predecessor shall be assessed in respect of the income of the previous year in which the succession took place upto the date of succession and the successor shall be assessed in respect of income of the previous year 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

and packing credit bank loan interest, we find no merit into the contention of the assessee.

Proportionate disallowance with regard to packing credit loan interest for 11 days comes to ₹ 1,29,154/-, whereas the Assessing Officer computed the same as on 31.12.2007. Accordingly, we direct the Assessing Officer to restrict this disallowance to the extent of ₹ 1,29,154/- and the rest of the disallowance is deleted.

With regard to wages to workers, the liability 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

#8377; 7,09,780/- is contested before us; i.e., ₹ 5,55,210/- out of interest on term loan and ₹ 1,54,570/- on account of preliminary expenses. With regard to disallowance on account of interest on term loan amounting to ₹ 5,55,210/-, the contention of the assessee was that the interest for ₹ 15,65,807/- on term loan was debited on 31.12.2007. Therefore, the liability of bank loan interest arose when the bank debits the interest amount in the bank account. In this case, th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ompany itself and therefore, 20% of ₹ 11,09,260/-, which amounts to ₹ 2,21,852/- was debited to the profit and loss account u/s 35D of the Act. We find that the preliminary expenses are in respect of incorporation of the company; however, the Assessing Officer assumed the expenses for the whole year and disallowed proportionately. Therefore, no disallowance is called for in this case and the Assessing Officer is directed accordingly.- Decided partly in favour of assessee. - ITA No. 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

confirming addition on account of disallowance out of various expenses of textile division amounting to ₹ 10,31,448/- as per page 10 of the CIT(A) order. 2. The learned CIT(A) grossly erred in confirming addition on account of disallowance out of various expenses of power division amounting to ₹ 7,24,700/- as per page 10 of the CIT(A) order. 3. The appellant reserves right to add, alter and withdraw of any grounds of appeal. 3. Briefly stated facts are that the case of the assessee .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

essing Officer that the assessee has not computed the income of the previous year in which the succession took place as per provisions of the Act. Accordingly he issued a show-cause notice dated 13.12.2010, calling upon the assessee to show cause as to why the proportionate disallowance should not be made in respect of Garment/Textile Division and Power Divison. The assessee, in response to the show-cause notice, filed a detailed reply; however, the Assessing Officer did not accept the explanati .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sion amounting to ₹ 10,31,448/-. 4.1 At the time of hearing before us, no one appeared on behalf of the assessee; however, a written submission has been filed with a request to decide the issue on the basis of the written submission. As per the written submission, the disallowance to the extent of ₹ 9,75,370/- is contested and rest of the disallowance is not pressed. The contention of the assessee in respect of Ground No.1 is as under:- Nature of expenses Amount Submission Fees to CA .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

2007, i.e., in the end of the month. Since the partnership firm Abhishek Exports was converted into company on 12.12.2007 will all its assets and liabilities, any liability which arose after the conversion belongs to Abhishek Exports (India) Pvt. Ltd. It is therefore urged that proportionate disallowance of 11 days is not justified. Packing credit bank loan interest 3,63,980 The actual disallowance was discussed at ₹ 1,29,154/- on page No.4 (first two line) of the assessment order. It 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

he contended that as per Section 170(1) of the Act, the computation was required to be made by the assessee, but the assessee has not made the same in accordance with the provisions of Section 170 of the Act. He supported the orders of the authorities below. 5. We have heard the rival contentions and perused the material on record. The contention in the written submission challenging the disallowance in respect of this ground is that the legal fees accrued as and when the bill was raised by 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

not justified. In respect of packing credit bank loan interest, similar contention is made that the proportionate disallowance of 11 days was not justified. 5.1 We have given our thoughtful consideration to the rival contentions of the parties. As per Section 170(1), where a person carrying on any business or profession has been succeeded therein by any other person who continues to carry on that business or profession, the predecessor shall be assessed in respect of the income of the previous .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

diture pertains to earlier period. Therefore, in respect of disallowance towards CA s bills is justified. In respect of disallowance of wages to workers and packing credit bank loan interest, we find no merit into the contention of the assessee. 5.2 From the assessment order, it is noticed that the proportionate disallowance with regard to packing credit loan interest for 11 days comes to ₹ 1,29,154/-, whereas the Assessing Officer computed the same as on 31.12.2007. Accordingly, we direct .....

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