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2016 (12) TMI 953 - ITAT DELHI

2016 (12) TMI 953 - ITAT DELHI - TMI - Disallowance being loss on foreign exchange incurred on trading liabilities - Held that:- We find that the assessee has, albeit, filed copy of account of Foreign exchange loss, but, the same does not indicate the nature of transactions on which such foreign exchange loss was incurred. There is no discussion in the assessment order about the nature of loss. Since such details were also not available before the ld. CIT(A) enabling him to categorize the foreig .....

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tal expenditure, not eligible for deduction. Needless to say, the assessee will be allowed an opportunity of hearing in such fresh proceedings. - Addition being the payments made towards Employees and Employer’s Provident Fund contribution - delay ranging between one to four/six days in depositing the amounts - Held that:- Both the employer’s and employees’ contribution are allowable as deduction if the amount of provident fund etc., though belatedly, but is paid before the due date of filin .....

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tion of tax at source by customers, the ld. AR failed to furnish the same and corroborate the version of tax deducted at source by the customers without furnishing any TDS certificates. In the absence of the foundation of the deduction of tax at source by customers, we are unable to accept the assessee’s contention for allowing deduction. - Disallowance being tax paid on salaries of employees under protest - Held that:- The assessee was made liable to pay a sum of ₹ 1,50,000/- on acco .....

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ribunal, if any, against the order u/s 201(1) creating demand of ₹ 1,50,000/-. We, therefore, direct the AO to allow deduction for ₹ 1,50,000/- in the year. If such demand has been erased by the Tribunal in subsequent proceedings, then, the amount so refunded should be charged to tax in the relevant year. - Addition being excess deposit of TDS amount on salaries to employees - Held that:- We find that the assessee has set up a case that a sum of ₹ 37,431/- was paid in exce .....

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sessee is contending before us is that it paid ₹ 85/- to its employees, but, deducted and paid TDS of ₹ 20/- to the exchequer. This position, if correct, calls for allowing deduction in respect of ₹ 5 (Rs.20-Rs.15), being an amount incurred during the course of business. However, if the employee is paid ₹ 80/- after deduction of ₹ 20/- as TDS, as against the correct liability of ₹ 15, then, of course, there can be no deduction for the remaining sum of ₹ .....

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ary, JM Appellant by : Shri C.S. Aggarwal, Sr. Advocate & Shri R.P. Mall, Advocate Respondent by: Shri S.K. Jain, DR ORDER Per R. S. Syal, AM This appeal by the assessee is directed against the order passed by the CIT(A) on 30.11.2007 in relation to the Assessment Year 2002-03. 2. No argument was advanced in respect of Ground No.1, which is hereby dismissed. 3. Ground no. 2 is against the sustenance of disallowance of ₹ 38,41,434/-, being loss on foreign exchange incurred on trading li .....

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y noticing that the assessee did not furnish any details about the foreign exchange loss, against which the assessee has come up in appeal before us. 5. We have heard the rival submissions and perused the relevant material on record. There can be no dispute on the proposition that foreign exchange loss is deductible in respect of trading transactions involving purchase and sale of goods. However, foreign exchange loss cannot be allowed as deduction where a loan is taken for purchasing a capital .....

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ing capital assets, and the same are absent before us as well, we set aside the impugned order and remit the matter to the file of AO for ascertaining the nature of foreign exchange loss. To the extent such foreign exchange loss/gain relates to trading transactions, the same should be taken as a revenue item and hence deductible/chargeable to tax. The other part relating to acquisition of capital asset should be taken as a capital expenditure, not eligible for deduction. Needless to say, the ass .....

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f disallowance. 7. We have heard the rival submissions and perused the relevant material on record. A chart has been drawn at page 6 of the impugned order, which shows that employees and employer s share of contribution to PF and family pension fund for the month of May, 2001 was actually deposited on 21.6.2001 against the due date of payment of 20.6.2001. Similarly, the employees and employer s contribution to PF and employees contribution to family pension fund for the month of March, 2002 was .....

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as allowed deduction in respect of employees share when the amount was paid before the due date. When we consider these two judgments, it becomes patent that both the employer s and employees contribution are allowable as deduction if the amount of provident fund etc., though belatedly, but is paid before the due date of filing of return u/s 139(1) of the Act. Adverting to the facts of the instant case, it is seen as an admitted position that the assessee deposited its and employees share in EPF .....

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d from the customers who had deducted the amount. The AO made the disallowance which came to be sustained in the first appeal. 10. We have heard both the sides. On a query about the details and evidence for such deduction of tax at source by customers, the ld. AR failed to furnish the same and corroborate the version of tax deducted at source by the customers without furnishing any TDS certificates. In the absence of the foundation of the deduction of tax at source by customers, we are unable to .....

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nance, etc., to its employees without deduction of tax at source was made. The AO raised a demand on account of such short deduction of tax at source amounting to ₹ 1,50,000/- which was paid by the assessee under protest. The AO did not allow any deduction for this sum, which action was confirmed in the first appeal. 12. Having heard the rival submissions and perused the relevant material on record, it is noticed that the assessee was visited with proceedings u/s 201(1) for short deduction .....

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llowed as deduction if it was paid and not refunded to the assessee. On a pertinent query, both the sides did not have an idea about the order passed by the Tribunal, if any, against the order u/s 201(1) creating demand of ₹ 1,50,000/-. We, therefore, direct the AO to allow deduction for ₹ 1,50,000/- in the year. If such demand has been erased by the Tribunal in subsequent proceedings, then, the amount so refunded should be charged to tax in the relevant year. 13. The next ground is .....

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loyees. Similarly, a sum of ₹ 4,047/- was claimed as deduction, being excess contribution to Provident Fund account. The AO did not allow deduction of these two amounts which action was upheld in the first appeal. 15. Having heard the rival submissions and perused the relevant material on record, we find that the assessee has set up a case that a sum of ₹ 37,431/- was paid in excess of the liability and no TDS certificates were issued to any of the deductee employees. Suppose salary .....

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