TaxTMI 
TaxTMI 
2013 (11) TMI 318
X X X X Extracts X X X X
X X X X Extracts X X X X
....isposed off by a single consolidated order for the sake of convenience. 2. We first take up the appeal of the revenue in ITA no. 3261/Mum/2009 for assessment year 2005-06. The revenue in this appeal has raised disputes on two different grounds which relate to disallowance of foreign travel expenses and addition made on account of arrears of depreciation while computing the book profit u/s 115JB of the Income Tax Act. 2.1 We first take up the dispute relating to disallowance of foreign travel expenses. The AO noted that the assessee had claimed foreign travel expenses of Rs. 269634 on account of foreign travel of Sarla Devi Birla, the wife of the Director and Smt. N. Dalmia, wife of the president of the company. It was submitted that it wa....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... learned DR on the other hand supported the orders of AO and argued that there was no evidence of any business purpose served by the visit of the wives and placed reliance on the findings of the assessing officer as well as the judgments relied upon by him. 3. We have perused the records and considered the matter carefully. The dispute is regarding allowability of claim of expenditure on account of foreign travel of wives of the Director and President of the company. There is no dispute that the wives are not the employees of the company. The allowability of expenditure depends upon the facts and circumstances of each case. In assessment year 1996-97 to 1998-99 and in assessment year 2004-05 the claim had been allowed but in assessment yea....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sessee to explain as to why such depreciation which did not relate to the current year should not be added to the book profit. The assessee submitted that the accounts had been prepared as per the provisions of section 205 of the company's Act which could not be altered for the purpose of computing the book profit u/s 115JB of the Income Tax Act. The assessee placed reliance on the judgment of Hon'ble Supreme Court in case of CIT Vs. Apollo Tyres Ltd. (255 ITR 273). AO however did not accept the contentions raised and observed that the arrears of depreciation could not be considered as liability of the current year. He, therefore, made addition of Rs. 124106375/-. In appeal CIT(A) observed that the AO while computing the book profit u/s 115....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ith and AO had no jurisdiction to go beyond the net profit shown in the such accounts. The Tribunal, therefore, deleted the addition made. The facts this year are identical. We, therefore, respectfully following the decision of Tribunal in assessee's own case in assessment year 2004-05 (Supra), see no infirmity in the order of CIT(A) in deleting the addition made and the same is, therefore, upheld. 5. The appeal of the assessee in ITA No. 1664 for assessment year 2006-07. The assessee in this appeal has raised disputes on three different grounds. 5.1 The first ground is regarding addition made by AO on account of penalty levied for violation of provisions of different statutes aggregating to Rs. 3,87012/-. AO noted that the assessee had p....
X X X X Extracts X X X X
X X X X Extracts X X X X
....TA no. 1073/Mum/2008 . The Tribunal noted that the claim of the assessee at the rate of 1/10th has already been allowed by the Tribunal in assessment years 2000-01 and 2001-02 and also in assessment year 2003-04. Tribunal, therefore, following the decision in earlier years allowed the claim of the assessee. The facts this year are identical. We, therefore, respectfully following the decision of Tribunal in assessee's own case in earlier years (supra) allow the claim of the assessee. The order of CIT(A) is, therefore, set aside and the claim of the assessee is allowed at the rate of 1/10th of such expenses. 7. The third dispute raised by the assessee is regarding the AO not granting the credit for Tax Collected at Source (TCS). The learned ....