TaxTMI 
TaxTMI 
TaxTMI 
2015 (7) TMI 861
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....on of delay. On due consideration of the application of the assessee coupled with the fact that order of the Commissioner of Income Tax (Appeals) is under challenge before the Tribunal in the appeal of revenue also, It is open for discussion and assessee could file cross objection on receipt of notice in the revenue's appeal. We condone the delay and proceed to decide both the appeals on merit. 3. The solitary grievance of the assessee is that Ld. Commissioner of Income Tax (Appeals) has erred in confirming the addition for Rs. 19,82,993/-. 4. Brief facts of the case are that assessee is a company engaged in the export of back office operation and software development. It has registered as 100% EOU export oriented unit with the software t....
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....icer therefore disallowed the claim of the assessee. 5. Appeal to the Commissioner of Income Tax (Appeals) did not bring any relief to the assessee. 6. With the assistance of Ld. representatives, we have gone through the record carefully. The issue in dispute is squarely covered against the assessee by the decision of Hon'ble Gujarat High Court rendered in the case of Gujarat Road Transport Corporation reported in 366 ITR page 170 wherein Hon'ble High Court has held that employees' contribution if not paid within the due date provided in the PF and ESI Act then, deduction will not be admissible to the assessee. The view of the ld. Commissioner of Income Tax (Appeals) is in line with the hon'ble High Court's decisions therefore, we do not ....
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.... Act. Ld. Assessing Officer has pointed out certain expenses which are disallowed with the help of section 40(a)(ia) of the Income Tax Act, 1961 on the ground that assessee either failed to deduct the TDS on certain payments or after deducting TDS failed to deposit in the Government account, therefore, it is not entitled for deduction of those expenses. He accordingly, disallowed the claim of assessee. On appeal, Ld. First Appellate Authority, has observed that once this expenditure is to be added in the total income of the asessee then, it will enhance the business profit and accordingly assessee will be entitled for exemption u/s. 10B of the Act and it will be revenue neutral. There will no variation in the ultimate taxability of the inco....
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.... hardship to the taxpayers it has to be treated as retrospective w.e.f. April 2005 in the case of Kanubhai Ramjibhai Vs Income Tax Officer (2011) 49 DTR (Ahd Trib) 70 Rs. 4,94, 204 On account of TDS not deducted on Computer Rent u/s 1941 As per provision of the section this transaction is not covered under this section Rs. 98,652 On account of TDS not deducted on Audit Fees u/s 194J Bills of Fees and reimbursement expenses are separately and this transaction is not liable for TDS Rs. 7,43,053 On account of IDS not deducted on Consulting Fees u/s 194J The nature of transactions is for work contract, not for any technical and professional in nature and the same transaction is covered u/s 194C, not under 194J. Further there is no paym....
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....se on account of default under TDs provisions will not affect appellant's taxable income. In view of this, the applicability of TDS provisions and disallowance under section 40 (a) (ia) is not discussed here. However the addition on account of delayed payment of employee's contribution to PF/ESI is not made in business head. This addition is made under section 2 (24) (x) of IT Act. Expense in respect of this would have been allowable under section 36 (1) (va) of IT Act if appellant made the payment of PF/ESI in time. Since the payment was not made in time, it is taxed as income; however no expense is allowable in respect of this. Therefore non-allowance of expense will not result in increased business profit. Accordingly appellant ....