TMI Blog2021 (12) TMI 441X X X X Extracts X X X X X X X X Extracts X X X X ..... has to be allowed on cash basis i.e. actual payment basis and not on accrual basis. It is pertinent to note that the payments with regards to the leave encashment have been made in subsequent assessment year i.e. 2013-14 and thus, we direct the Assessing Officer to verify and allow the deduction u/s 43B on actual payment basis as held in the decision of the Hon ble Apex Court. Needless to say, the assessee be given opportunity of hearing by following principles of natural justice. Hence, Ground No. 2, 2.1 2.2 2.3 are partly allowed. Addition u/s 14A r.w.r. 8D - HELD THAT:- As the assessee has earned only ₹ 2,34,585/- as exempt income. The assessee also disallowed a sum of ₹ 29,04,491/- u/s 14A. The Ld. AR at the time of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1.2 That further, the Learned Commissioner of Income Tax (Appeals) has failed to appreciate the fact that exactly an identical issue has been decided in favour of the assessee by learned CIT (A) for the Assessment Year 2008 - 09 and as such, the same should have been allowed following the principles of consistency. 2. That the Learned Commissioner of Income Tax (Appeals) erred in law and on facts in sustaining a disallowance of a sum of ₹ 54, 38, 500/- towards leave encashment in view of provisions of section 43B (f) of the IT Act 1961; 2.1 That in doing so, the learned Commissioner of Income Tax (Appeals) has failed to appreciate the fact that the provision for leave encashment was based upon the actuarial valuation whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14A of the Act , thus, entire disallowance (even the disallowance made by assessee suo moto) made under section 14A read with section Rule 8D should have been deleted, as such. 3. During the year under consideration, the assessee company is engaged in the business of broadcasting, telecasting, relaying, transmission or distributing audio and video or other programmes of software for television, radio and other media. The assessee company e-filed its return of income declaring income of ₹ 25,54,27,410/- on 29/09/2012 for the Assessment Year 2012-13. The Assessing Officer made addition of ₹ 1,03,15,922/- in respect of provision for interest payable to Prasar Bharti, addition of ₹ 3,34,81,847/- relating to consumption de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er make it clear that the assessee would, during the pendency of this Civil Appeal, pay tax if section 43B(f) is on the statute book but as the same time it would be entitles to make a claim in its returns Thus, in view of the above, the Ld. AR submitted that the assessee had made a claim on accrual basis as per the aforesaid order passed by the Hon ble Apex Court, and thus, the deduction since has been denied on accrual basis as per the judgment of Hon ble Apex Court supra, then the same needs to be allowed on actual payment basis. The Ld. AR further submitted that the payments with regards to the leave encashment have been made in subsequent assessment year i.e. 2013-14 and the Ld. AR prayed that a suitable direction may be given b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t year, rather the investments with regards to mutual funds were liquidated during the impugned assessment year. The Ld. AR further relied upon the judgment of South Bank Ltd. vs. UOI (SC) reported in 130 taxmann.com 178 on the aforesaid proposition. Thus, the Ld. AR prayed that disallowance so made by assessee suo moto under Rule 8D(2)(ii) be deleted. The Ld. AR further submitted that with regard to disallowance under Rule 8D(2)(iii), only those investments could have been considered on which exempt income was earned by assessee. Since dividend was only earned on mutual funds, thus, average of (₹ 1, 79, 67, 948 + Nil/2)* 0.5% would work out to be ₹ 44, 920/-. Thus, in any case disallowance under Section 14A could not have been ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
