TMI Blog2021 (7) TMI 322X X X X Extracts X X X X X X X X Extracts X X X X ..... not to controvert this undisputed fact that this issue is covered in favour of the assessee by the decision of Special Bench of the ITAT Delhi as referred above. Therefore, we do not find any merit in the appeal of the revenue, therefore, the same stands dismissed. Disallowance u/s. 40(a)(ia) on account of non-deduction of tax - HELD THAT:- After verifying that assessee has not filed supporting details and invoices of reimbursement of expenditure. In this regard, it is observed that ld. CIT(A) has not demonstrated the specific deficiencies in the details filed by the other parties in respect of payment made therefore, we restore this issue to the file of Assessing Officer for adjudicating afresh after verification of specific detail and the claim of payment of taxes by payee. Accordingly, the appeal of the revenue is dismissed and cross objection filed by the assessee is allowed for statistical purposes. Disallowance u/s. 36(i)(iii) - AO observed that assessee has given interest free loan to M/s. Lalbhai Realty Finance Ltd. an associated concern of the assessee company - CIT(A) has deleted the disallowance after verification of undisputed fact that assessee was having su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer to consider the claim of the assessee after verification of the facts available on the record. Accordingly, this ground of appeal of Revenue stands dismissed. - ITA Nos. 2107, 2108 & 2816/Ahd/2015, Cross Objection Nos. 159, 160 & 191/Ahd/2015 (in ITA Nos. 2107, 2108 & 2816 /Ahd/2015) - - - Dated:- 30-6-2021 - Shri Mahavir Prasad, Judicial Member And Shri Amarjit Singh, Accountant Member For the Assessee : Shri Vartik Chokshi, A.R. For the Revenue : Dr. Shyam Prasad, Sr. D.R. ORDER PER : AMARJIT SINGH, ACCOUNTANT MEMBER:- These three appeals filed by revenue and three cross objections filed by assessee for A.Y. 2009-10 to 2011-12, arise from order of the CIT(A)-1, Ahmedabad dated 06-04-2015, in proceedings under section 143(3) of the Income Tax Act, 1961; in short the Act . 2. The brief fact of the case is that return of income declaring total loss of Rs. -13,59,35,856/- was filed on 24th Sep, 2009. The case was subject to scrutiny assessment and notice u/s. 143(2) of the Act was issued on 23rd August, 2010. Assessment u/s. 143(3) of the Act was finalized on 28th December, 2011 and total loss of the assessee was assessed at Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition to the extent of ₹ 2,58,487/-. After considering the decision of Jivraj Tea Ltd. vs. DCIT ITA No. 886/Ahd/2012 dated 28-05-2014 wherein it is held that disallowance u/s. 14A cannot be exceeded the exempt income we restrict the disallowance to the extent of the exempt income in the form of dividend earned by the assessee during the year under consideration to the amount of ₹ 1,92,663/-. Accordingly, this ground of appeal of the revenue is dismissed and the cross objection filed by assessee is partly allowed. Ground No. 2 (Addition deleted by the ld. CIT(A) in computing book profit u/s. 115JB of ₹ 2,78,859/-) filed by revenue 7. During the course of appellate proceedings before us at the outset the ld. counsel has submitted that no addition of disallowance made u/s. 14A can be made while computing book profit u/s. 115JB of the Act as held by Special Bench decision of Delhi ITAT in the case of ACIT vs. Vineet Investment Pvt. Ltd. (2017) 165 ITD 27/82 taxmann.com. The ld. counsel is fair enough not to controvert this undisputed fact that this issue is covered in favour of the assessee by the decision of Special Bench of the ITAT Delhi as referred above ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t assessee has not filed supporting details and invoices of reimbursement of expenditure. In this regard, it is observed that ld. CIT(A) has not demonstrated the specific deficiencies in the details filed by the other parties in respect of payment made of ₹ 4,05,359/-, therefore, we restore this issue to the file of Assessing Officer for adjudicating afresh after verification of specific detail and the claim of payment of taxes by payee. Accordingly, the appeal of the revenue is dismissed and cross objection filed by the assessee is allowed for statistical purposes. ITA No. 2107/Ahd/2015 filed by revenue Ground No. 4 ( Deletion of disallowance u/s. 36(i)(iii) of ₹ 1.56 crores. 11. During the course of assessment proceedings, the Assessing Officer observed that assessee has given interest free loan of ₹ 13 crores to M/s. Lalbhai Realty Finance Ltd. an associated concern of the assessee company. On query, the assessee explained that it has advanced the loan to its sister concern out of the interest free funds and no disallowance should be made. The Assessing Officer has not agreed with the submission of the assessee stating that assessee has n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l of revenue is dismissed. CO 159/Ahd/2015 A.Y. 2009-10 filed by assessee Ground No. 3 (Sustaining the addition of ₹ 5,25,935/- u/s. 41(1) of the act) 17. During the course of assessment, the Assessing Officer has made addition of ₹ 5,25,935/- in respect of sundry creditors standing in the name of Sarvesh Cotton Mills Ltd. as this trading liability was outstanding since 2006-07. The Assessing Officer has disallowed the outstanding liability u/s. 41(1) of the Act on the reasoning that as per the provisions of the Limitation Act the liability to pay its debt has ceased to exist. 18. The assessee has filed appeal before the ld. CIT(A). The ld. CIT(A) has sustained the addition stating that assessee failed to provide contra confirmation from the party to substantiate that this liability was still existing. 19. Heard both the sides and perused the material on record. Considering the fact that auditor has remarked in the Audit report in form NO. 3CD that the said liability was still existed subject to confirmation we restore this issue to the file of Assessing Officer to adjudicate afresh after giving opportunity to the assessee to make compliance as re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Ground No. 4 (provision for not reduced while calculating the book profit of ₹ 15,04,672/-) 24. The Assessing Officer has calculated book profit u/s. 115JB at ₹ 31,59,677/- while calculating book profit, the Assessing Officer has not given effect of provision for doubtful debt written back of ₹ 15,04,671/- in computing book profit. 25. The assessee has filed appeal before the ld. CIT(A). The ld. CIT(A) has directed the Assessing Officer to verify the contention of the assessee that the provision was made in assessment year 2010-11 and same was added while computing book profit u/s. 115JB of the Act and the same was reversed in the year under consideration, if it is found correct, the Assessing Officer is directed to reduce book profit at ₹ 15,04,671/-. After hearing both the sides and taking into consideration the detailed finding of the ld. CIT(A), we do not find any infirmity in the decision of ld. CIT(A) in directing the Assessing Officer to consider the claim of the assessee after verification of the facts available on the record. Accordingly, this ground of appeal of Revenue stands dismissed. 26. In the result, appeal ITA 2107, 2108 an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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