TaxTMI 
TaxTMI 
TaxTMI 
2015 (5) TMI 611
X X X X Extracts X X X X
X X X X Extracts X X X X
....ax were 01.10.2008, 04.11.2008, 04.12.2008, 01.01.2009 and 02.02.2009, so that the same ought to have been deposited latest by 31.03.2009, while were admittedly deposited only on 22.09.2009. The deduction in its respect would, under law, thus be exigible to deduction only in the year of payment, i.e., for A.Y. 2010-11. This represents and sums up the Revenue's case, so that, aggrieved, the assessee is in second appeal, raising the following ground: '1. On the facts and circumstances of the case and law the learned Commissioner of Income Tax - Appeal erred in confirming the disallowance of payment of Commission of Rs. 21,34,840/- u/s. 40(a)(ia) of the Income Tax Act, 1961 without considering decision of ITAT and High Court.' 3. We have heard the parties, and perused the material on record. The only decision cited by the assessee, as per the orders by the authorities below, is by the Tribunal in the case of Bansal Privahan (India) Pvt. Ltd. vs. ITO [2011] 43 SOT 619 (Mum), stating that the amendment by Finance Act, 2010 (w.e.f 01.04.2010), providing time for deposit of TDS up to the due date of filing of the return of income, which in the instant case is 30.09.2009, le....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ntiated, so that irrespective of the volume of dividend, disallowance of corresponding expenditure shall arise. Apart from un-substantiation of its claims, the same would be of no assistance. This is as, admittedly, the purpose of investment is not to generate income, so that the same cannot be regarded as toward a source of income, but perhaps an investment, made for strategic reasons. How, then, one may ask, could the same be disregarded for disallowance of expenditure attributable to such investments, which have nevertheless to be managed? The income, to whatever extent, that may arise out of such investment would not form part of the total income, while expenditure, particularly indirect expenditure, is not incurred in any proportion to income, which may be paltry, or perhaps even negative, considering that income for the purposes of the Act is only one which corresponds with the common understanding of the said term, i.e., net of expenses, so that the same would only be after deducting expenses attributable thereto. As regards the non-receipt of income there-against, it is the income from the shares, i.e., as a class of investment, that has to be considered, and not qua each ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er, and the same was only a deferment of income. Even in cases where sale/income was booked against the impugned sum/s in the following year, the same were not accompanied by either delivery of goods or rendering of services, so that the same was, again, without basis, and with a view to neutralize a non-existing liability. This defines the Revenue's case, which stands agitated by the assessee, raising the following ground: '3. On the facts and circumstances of the case and law the learned Commissioner of Income Tax - Appeal erred in confirming the treatment of Advance received from Customers as unexplained Advance without appreciating the details submitted to him and also ignoring the fact that those advances were offered as income in subsequent years and the same has resulted in Double Taxation of same Income.' 7. We have heard the parties, and perused the material on record. The impugned amounts (14 in number) have been received from customers, either during the previous year or earlier years, purportedly by way of advances against sales of goods, viz. vehicles, spare parts, etc. or services, i.e., against servicing of vehicles - the assessee being in the business....
X X X X Extracts X X X X
X X X X Extracts X X X X
....how the same supports the assessee's case. Lease tax, even if payable by the assessee out of the sum realized, i.e., Rs. 96.62 lacs, being a statutory due, would stand to be allowed in the year of payment. Appropriating the amount in accounts as a liability would, therefore, be of little assistance to the assessee; its' case continuing to be de hors any substantiation on facts, with the amount outstanding in books prior to 31.03.2008 (APB pg. 44). Continuing further, true, the amount/s under reference may have been brought to tax for the following (another) year/s. However, it is only the assessee who is responsible for the same, i.e., by disclosing it as its income for that year/s. It is only where the assessee concedes to the income being subject to tax for the current year that the Revenue could be faulted for, despite the assessee having returned it as so, i.e., for the following year/s, assessing it as income for that year/s, and which is not the case. Be that as it may, there is no denying that the same cannot be subject to tax, and neither could it accrue to the assessee, i.e., as income, twice, so that the second/subsequent accrual, on which there is no finding tho....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ads as under: 'Certain deductions to be only on actual payment. 43B. Notwithstanding anything contained in any other provision of this Act, a deduction otherwise allowable under this Act in respect of- (a) ............ (b) ............ (e) any sum payable by the assessee as interest on any loan or advances from a scheduled bank in accordance with the terms and conditions of the agreement governing such loan or advances, or Explanation 3D.-For the removal of doubts, it is hereby declared that a deduction of any sum, being interest payable under clause (e) of this section, shall be allowed if such interest has been actually paid and any interest referred to in that clause which has been converted into a loan or advance shall not be deemed to have been actually paid.' 8.3 A cash credit account operates both as a loan (fluctuating) or advance account as well as a current account, with all the receipts and payments of the assessee borrower being channelized through it. The bank, accordingly, also debits its interest to this account, increasing its balance immediately to that extent, and which thus becomes part of the loan/advance amount, i.e., borrowed capital, and on whi....