TaxTMI 
TaxTMI 
2015 (7) TMI 907
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....eciating that the A.O. made the disallowance simply relying on the erroneous Remark in Auditors' Report, without verifying the facts. (3) The C.I.T. (A) has not appreciated the Auditor's remark in correct perspective, which clearly mentions in the report that application for sanction of additional remuneration has been made to the Central Govt. and sanction is awaited. (4) The C.I.T.(A) has overlooked the ITAT's order in appellant's own case in earlier years re: allow ability of remuneration duly sanctioned by the Central Government under the provisions of the Companies Act. (5) The C.I.T. (A) erred in not appreciating that the Central Government's sanction was duly received before the assessment was made, and ther....
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....educted TDS before the year end from the provision made for relevant expenses and paid the TDS in various installment before due date for filing the Return of Income i.e. 30th Sept., 2009, and the Auditors Report was erroneous to that extent. (8) The C.I.T. (A) erred in not appreciating that amendment in Sec.40(a)(ia) in 1. Tax Act, 1961 made by Finance Act, 2010 has retrospective effect. 3. The appellant craves leave to alter, amend, expand or change the grounds of appeal as may be advised. Assessee-company, engaged in the business of manufacture, exports and domestic sales of Blister packaging & Allied Machines, filed its return of income on 25.09.2009,decIaring total income of Rs. 8,95,21,216/-.The AO completed the assessment u/s.14....
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....plication was made in Form NO.25A to the Central Government for approval of excess remuneration which was sanctioned vide letter dated 14.04.2010,that the excess remuneration paid to the Directors was an allowable expenditure. After considering the submissions of the assessee and the assessment order, the FAA held that assesse's own auditor had reported the payment of excess remuneration, that a copy of sanctioned letter granted by the Central Government for excessive remuneration paid was filed before him. The FAA called for a remand report from the AO with regard to the additional evidence submitted by the assessee in form of the sanction letter of the Central government. After considering the remand report, dated 11.02.11,the FAA hel....
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....cess remuneration to the Director. As the facts and circumstances of the year under appeal are similar to the facts of the earlier year, therefore, following the order for that year,we are deciding ground no.1 in favour of the assessee. 4. Next ground of appeal deals with disallowance of Rs. 18.72 lakhs uls.40(a)(ia)of the Act. During the assessment proceedings, the AO found that TDS had not been deducted on Rs. 18.72 lakhs, that the said amount was not added in computation of income. He issued a show cause notice to the assessee in that regard. ln its reply, the assessee stated that TDS payment of Rs. 18.72 lakhs had been made before September,2009,that all the expenses were allowable. The AO held that as per the audit report tax was not ....
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....see had filed additional evidences, that same were not admitted by the F AA, that the assessee had filed composite certificate of deducting taxes. It is found that Hon'ble Delhi High Court has in the matter of Naresh Kumar(supra) has held that the proviso was applicable with retrospective effect. Following is the decision of the Hon'ble Court: Provisions relating to deduction of tax at source are important as this ensures that tax so deducted gets deposited with the Government and non-taxpayers/filers can be identified. The deductees do not suffer and are not deprived of credit of deduction made from their income. Section 40(a)(ia) of the Income-tax Act, 1961is a provision incorporated with that objective and purpose in mind. It is ....