2012 (7) TMI 1158 - AT - Income Tax

Tribunal rejects Revenue's appeals on deduction deletion and interest disallowance for assessment years.

The Tribunal dismissed the Revenue's appeals challenging the deletion of deduction under section 36(1)(va) and disallowance of interest for assessment ... - Issues involved: Appeal against orders passed by Ld. Commissioner of Income-tax (Appeals)-VIII, Ahmedabad for assessment years 2007-08 and 2008-09.ITA No.651/Ahd/2012 for A.Y. 07-08:The Revenue challenged the deletion of deduction u/s. 36(1)(va) and disallowance of interest. The assessee made late deposits of employees' contributions and provided interest-free advances. The Ld. CIT(A) partly allowed the appeal. The Tribunal considered the judgment of Hon'ble Delhi High Court in CIT v. Aimil Ltd (2010) 321 ITR 508 (Del) regarding late deposits. The Tribunal upheld the Ld. CIT(A)'s decision, stating that the Act permits delayed deposits with consequences. Regarding interest disallowance, the Tribunal noted the availability of interest-free funds for advances and relied on the judgment of Hon'ble Bombay High Court in CIT v. Reliance Utilities & Power Ltd. 313 ITR 340 (Bom). The Tribunal dismissed the Revenue's appeal.ITA No.652/Ahd/2012 for A.Y. 08-09:The Revenue contested the deletion of interest disallowance. The Tribunal noted a similar issue in the previous appeal and upheld the Ld. CIT(A)'s decision. The Tribunal dismissed the Revenue's appeal.In conclusion, both appeals of the Revenue were dismissed by the Tribunal.