2022 (11) TMI 878

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..... n account of excess deduction u/s 35D of the Act pertaining to IPO related expenses, addition of Rs.1,51,83,347/- as disallowance u/s 43B and an addition of Rs.2,32,776/- as disallowance of interest on late payment of TDS, addition of Rs.1,00,000/- as disallowance u/s 40a(ia) and addition of Rs.1,42,500/- on staff welfare expenses. As there was no representation on behalf of the assessee inspite of several opportunities, we hereby proceed to decide the appeal by hearing the learned Departmental Representative (DR) and on perusal of the available materials on record. 2. The brief facts are that the assessee is a company engaged in business of providing Engineering Services and EPC Solutions. The assessee company has filed his return of inco .....

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..... w machinery to reduce the overheads and other costs. The assessee has also claimed that 80% of the funds were utilised to meet the working capital requirements. The AO as well as the learned CIT(A) has held that the objectives of the IPO as per the prospectus of the assessee company was for long term and the working capital requirement of the assessee seems to be for a long term. Further, to this the learned CIT(A) has stated that the assessee has raised funds for extension of business as per the provisions of section 35D(1)(ii) of the Act and whether, the impugned expenses pertaining to IPO are covered u/s 35D and whether the same has to be amortized over a period of 5 years was the issued before the lower authorities and not the nature an .....

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..... turn of income and the same was disallowed on the ground that the assessee has failed to furnish the details pertaining to the payment of the impugned amount before the lower authorities. The assessee has stated that it has turn NPA in August 2013 and the same was the reason for not paying the statutory dues. We find no infirmity in the order of the learned CIT(A) as the assessee has failed to furnish particulars of its claim before us. In the result, this ground of appeal filed by the assessee is dismissed. 6. Ground No. 6,7 and 8 pertaining to disallowance of interest on late payments of TDS, disallowance u/s 40a(ia) and addition on staff welfare expenses were not raised before the learned CIT(A) and the assessee has challenged these gro .....

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