2016 (12) TMI 953

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.... exchange incurred on trading liabilities. 4. Briefly stated, the facts of the case are that the assessee is engaged in import of Acterna Group's high technology T & M equipments for sale to various government and private sector companies in the telecom sector. The assessee filed return declaring loss of Rs. 95,25,230/-. Apart from others, the assessee claimed deduction in respect of foreign exchange loss amounting to Rs. 38,41,434/-. The AO made disallowance of the same. The ld. CIT(A) confirmed the disallowance by noticing that the assessee did not furnish any details about the foreign exchange loss, against which the assessee has come up in appeal before us. 5. We have heard the rival submissions and perused the relevant material on re....

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....tion. The AO made this disallowance without much discussion in the assessment order. The ld. CIT(A) sustained the same by noticing that there was a delay ranging between one to four/six days in depositing the amounts. The assessee is aggrieved against this sustenance of disallowance. 7. We have heard the rival submissions and perused the relevant material on record. A chart has been drawn at page 6 of the impugned order, which shows that employees' and employer's share of contribution to PF and family pension fund for the month of May, 2001 was actually deposited on 21.6.2001 against the due date of payment of 20.6.2001. Similarly, the employees' and employer's contribution to PF and employees' contribution to family pension fund for the m....

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....uld not be recovered from the customers who had deducted the amount. The AO made the disallowance which came to be sustained in the first appeal. 10. We have heard both the sides. On a query about the details and evidence for such deduction of tax at source by customers, the ld. AR failed to furnish the same and corroborate the version of tax deducted at source by the customers without furnishing any TDS certificates. In the absence of the foundation of the deduction of tax at source by customers, we are unable to accept the assessee's contention for allowing deduction. The impugned order is upheld. This ground is not allowed. 11. The next ground is against the sustenance of disallowance of Rs. 1,50,000/-, being tax paid on salaries of em....

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....herefore, direct the AO to allow deduction for Rs. 1,50,000/- in the year. If such demand has been erased by the Tribunal in subsequent proceedings, then, the amount so refunded should be charged to tax in the relevant year. 13. The next ground is against the sustenance of addition of Rs. 37,431/-, being excess deposit of TDS amount on salaries to employees. Next ground assailing sustenance of disallowance of Rs. 4,047/-, being excess deposit of Provident Fund contribution, is connected with the former ground. Both are, therefore, taken up for consideration in a combined manner. 14. The assessee claimed that a sum of Rs. 37,431/- was paid as TDS by it in excess of the legitimate liability in respect of salaries paid to its employees. Simi....