TaxTMI 
TaxTMI 
2016 (12) TMI 401
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....ings u/s.143(3) of the Income Tax Act, 1961; in short 'the Act'. 2. We first come to assessee's appeal ITA No.247/Ahd/2014. It raises three substantive grounds. First one amongst them challenges both the lower authorities' action in disallowing the sum in question of Rs. 2,02,500/- incurred in order to increase assessee's authorized share capital. This sum comprises of franking charges of Rs. 1,77,500/- for filing Form V followed by the letter head of filing fees amounting to Rs. 25000/-. Both the lower authorities quote hon'ble apex court's decision in Brooke Bond India vs. CIT 225 ITR 798 (SC) as followed in case of M/s. Vareli Textiles Industries vs. CIT (2006) 284 ITR 238 (Guj.). Learned counsel for the assessee vehemently argues in ....
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....al of bills from; IOCL Since the final accounts for FY 2007-08 were finalised on 15.04.2008 and said bills of Rs. 98S78/- were not approved by IOCL up to that date, same could not be accounted in that year. We came to know about bill clearance only at the time of receipt of TDS certificate, Payment for the said bill was also received in May 2008 so we have accounted the same in April 2008. Since the tax rate for FY 2007-08 and FY 2008-09 are same and there is no intention to escape income, we request you to consider the difference." 4. The Assessing Officer quoted Section 199 r.w. Rule 37BA(3) of the Income Tax Rules to conclude that credit of TDS deduction is to be given in assessment year in which income is assessable. He thus conclude....
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....ports the CIT (A)'s order upholding Assessing Officer's action. 8. Heard both sides. Case file perused. There is no dispute about the fact that the assessee's income in question has been admittedly subjected to TDS deduction in the impugned assessment year despite the fact that it has not declared its entire receipt as income of the relevant previous year. Both the lower authorities quote Section 199 of the Act r.w. Rule 37BA (3) of the Income Tax Rules. We first come to this statutory provision as amended from 01.04.2009 applicable from the impugned assessment year 2008-09. Section 199(1) provides that credit for the TDS deduction and paid to the central government is to be treated as payment of tax of the deductee assessee. This is fol....
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....to tax. We repeat once again that this clause no where prescribes addition of income component since dealing with TDS credit issue only. We rather observe that these expressions make it clear that main endeavor in the Rule in question deals with an issue wherein an income is split over in more than one assessment year as against facts of the case wherein there is no such circumstance. We thus conclude that the impugned addition is not sustainable. The same stands deleted. 10. The assessee's third substantive ground challenges Section 14A disallowance of Rs. 10,51,614/- comprising of proportionate interest and administrative expenses figures of Rs. 1,93,297/- and Rs. 8,58,317/-; respectively. The assessee's dividend income is Rs. 1,29,31,....
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....(2015) 376 ITR 553 (Guj.) upholds tribunal's order deleting administrative expenditure disallowance in similar circumstances. We draw support therefrom to delete this component of the impugned Section 14 disallowance as well. The assessee succeeds in third and last substantive ground. Its appeal ITA No.247/Ahd/2014 is partly accepted. 13. This leaves us with Revenue's cross appeal raising sole substantive ground in challenging the CIT(A)'s order directing the Assessing Officer to allow enhanced deduction u/s.35B over and above the original claim of Rs. 35.89 lacs made in the return of income. The assessee sought to enhance the said claim to the tune of Rs. 61,21,968/-. Ld. counsel representing assessee states in this backdrop that the in....