Assessee's appeal partially allowed, issues remitted for further consideration. Order pronounced on 8th Jan 2020.

The Tribunal partially allowed the assessee's appeal, remitting various issues back to the CIT (Appeals) for further consideration and adjudication based on the provided evidence. The order was pronounced on 8th Jan., 2020.

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Issues Involved:
1. Disallowance of delayed payment of employees' contribution to Provident Fund.
2. Disallowance of additional depreciation on computers.
3. Disallowance under Section 14A read with Rule 8D.
4. Disallowance of interest paid to Tata Capital Ltd under Section 40(a)(ia).
5. Disallowance of interest on advances to sister concerns under Section 40A(2)(a).

Detailed Analysis:

1. Disallowance of Delayed Payment of Employees' Contribution to Provident Fund:
The assessee argued that the authorities were not justified in disallowing Rs. 33,232 for delayed payment of employees' contribution to the Provident Fund, as these payments were made before the due date for filing the return of income. The Tribunal found that this ground was not raised before the CIT (Appeals) and restored the issue to the file of CIT (Appeals) for adjudication on merits, allowing the additional ground of appeal for statistical purposes.

2. Disallowance of Additional Depreciation on Computers:
The assessee claimed additional depreciation on computers, asserting they fall under the category of plant and machinery. The Tribunal noted the lack of evidence produced during appellate proceedings and remitted the issue to the file of CIT (Appeals) for adjudication, considering the evidences filed by the assessee.

3. Disallowance under Section 14A read with Rule 8D:
The assessee contended that the investments were made from own funds, not borrowed funds, and thus no disallowance of expenditure was warranted. The Tribunal, referencing the decision of the jurisdictional High Court in CIT Vs. Microlabs Limited, found that the assessee had sufficient surplus funds and restricted the addition to Rs. 38,857.

4. Disallowance of Interest Paid to Tata Capital Ltd under Section 40(a)(ia):
The assessee argued that the interest payments to Tata Capital Ltd were offered in their tax assessments, and thus no addition should be made. The Tribunal restored the issue to the file of CIT (Appeals) to consider submissions supported with evidence of Form 26A and adjudicate on merits.

5. Disallowance of Interest on Advances to Sister Concerns under Section 40A(2)(a):
The assessee claimed that advances to sister concerns were made from surplus funds and were for business purposes. The Tribunal, referencing the decision of the Hon'ble Bombay High Court in CIT Vs. Reliance Utilities and Power Ltd., found that the advances and investments were made from interest-free funds and directed the Assessing Officer to delete the interest disallowance of Rs. 5,19,058.

Conclusion:
The Tribunal allowed the assessee's appeal partly for statistical purposes, remitting several issues back to the CIT (Appeals) for further consideration and adjudication based on the provided evidences. The order was pronounced in the open court on 8th Jan., 2020.

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