9911796707
TMI Blog2018 (3) TMI 1876X X X X Extracts X X X X X X X X Extracts X X X X ..... together and are being disposed of by this common order, for the sake of convenience. 2. The assessee is a manufacturer of needle and roller ball bearing. We shall dispose of the appeals of both the parties together by adjudicating the each of the issues urged in both the years. 3. The first individual issue urged by the assessee in AY 2009-10 relates to the determination of Annual letting value of the property u/s 23 of the Act. The assessee had taken huge amount as interest free deposit and rent was received at lower amount. Hence the AO determined the Annual Letting value at a higher figure. The same was also confirmed by Ld CIT(A) by following his decision rendered in AY 2007-08 and 2008-09. This issue was considered by the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the TDS amount before the due date for filing return of income and hence no disallowance was called for as per the proviso inserted to sec. 40(a)(ia) of the Act by Finance Act, 2010. The tax authorities did not accept the contentions of the assessee. 6. We notice that identical disallowance was made in AY 2008-09 also. Before the Tribunal, the assessee relied upon the decision rendered Hon'ble Calcutta High Court in the case of CIT Vs. Virgin Creations (ITA No.302 of 2011) in order to contend that the first proviso inserted by Finance Act, 2010 is retrospective in nature. Accordingly it was contended that no disallowance u/s 40(a)(ia) is not called for, as the assessee has remitted the TDS amount before the due date for filing return of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO with similar directions. 9. We shall now take up the individual issue contested by the revenue, which relates to the Scientific Research Expenditure. This issue is contested by the revenue in both AY 2009-10 and 2010-11. The AO disallowed the claim of Scientific research expenditure u/s 35(2AB) for the reason that the assessee could not file Form 3CL before him. However, the assessee filed Form 3CL before Ld CIT(A) in AY 2009-10 and accordingly, the Ld CIT(A) deleted the impugned disallowance made in both the years. The revenue is aggrieved by his decision in both the years. 10. The Ld D.R submitted that the ld CIT(A) has deleted the disallowance without examining Form 3CL. 11. The Ld A.R submitted that the furnishing of Form 3CL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. 14. The next issue relates to the addition made to Gross profit by rejecting the books of accounts. This issue is common in AY 2009-10 and 2010-11. Both the assessee as well as the revenue is contesting the decision of Ld CIT(A) in both the years. 15. The AO had rejected the books of account and had enhanced the Gross profit by 1% in AY 2007-08 and 2008-09 by rejecting books of accounts. Following the same, the AO enhanced the Gross profit by 1% in AY 2009-10 and 2010-11 also by rejecting books of accounts. 16. In AY 2007-08 and 2008-09, the Ld CIT(A) has held that the rejection of books of accounts is not warranted and accordingly held that the provisions of sec. 145 are not attracted. However he held that in terms of sec.145A of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 36,05,921 ================== However, the AO added a sum of Rs. 41,95,811/- to the total income of the assessee u/s 14A of the Act. 20. In the appellate proceedings, the Ld CIT(A) granted relief in respect of interest paid on ECB Loan and accordingly confirmed the balance amount of addition. Aggrieved, both the parties are in appeal. 21. We heard the parties on this issue. From the Balance sheet, we notice the assessee is having own funds of Rs. 18061.83 lakhs and Rs. 17450.33 lakhs respectively as on 31.3.2008 and 31.3.2009. The total value of investments stands at Rs. 1781.45 lakhs and Rs. 1792.70 lakhs as on 31.3.2008 and 31.3.2009 respectively. Admittedly, the own funds available with the assessee is in far excess o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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