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TMI Blog2015 (3) TMI 1266X X X X Extracts X X X X X X X X Extracts X X X X ..... ication. Ground No.6 relating to initiation of penalty proceedings under section 271(1)(c) of the Act is premature at this stage. The remaining three grounds relate to the following three issues: a) disallowance of lease payment; b) disallowance of employees contribution to Provident Fund; and c) rejection of claim for deduction of expenditure relating to reimbursement of deputed staff cost. 3. We heard the parties and perused the record. The first issue relates to disallowance of lease payment made to M/s IBM for taking computer on lease, treating the same as capital expenditure. The assessee had taken computers on lease from M/s IBM. In the books of account, the assessee treated the same as "financial lease" and accordingly it clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s essential. Accordingly, we are of the view that this issue requires fresh examination at the end of the AO. Accordingly, we set aside the order of the AO and restore this issue to the file of the AO/DRP with a direction to decide the same afresh by duly considering the lease agreement, certificate given by the M/s IBM and any other information/explanations that may be furnished by the assessee. 5. The next issue relates to disallowance of employees' contribution to Provident Fund. We notice that the AO has disallowed the claim on the reasoning that the assessee failed to pay employees' contribution before the due date prescribed under the Provident Fund Act. 6. The ld. counsel submitted that the assessee has paid the amount before the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rokers and Shareholders (P) Ltd (2012) 349 ITR 336(Bom) that appellate authority is entitled to consider the additional claim, if any and adjudicate the same. Accordingly, we are of the view that the claim for deduction put forth by the assessee should be admitted. Further, since the same needs to be examined, we think it fit and proper to restore this issue to the file of the AO with a direction to examine the claim put forth for deduction by the assessee and take appropriate decision in accordance with law. 9. Needless to mention that the assessee should be given necessary opportunity of being heard. 10. In the result the appeal filed by the assessee is treated as allowed for statistical purposes. The above order was pronounced in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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