2015 (3) TMI 1266

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....ture and hence they do not require any adjudication. Ground No.6 relating to initiation of penalty proceedings under section 271(1)(c) of the Act is premature at this stage. The remaining three grounds relate to the following three issues: a) disallowance of lease payment; b) disallowance of employees contribution to Provident Fund; and c) rejection of claim for deduction of expenditure relating to reimbursement of deputed staff cost. 3. We heard the parties and perused the record. The first issue relates to disallowance of lease payment made to M/s IBM for taking computer on lease, treating the same as capital expenditure. The assessee had taken computers on lease from M/s IBM. In the books of account, the ass....

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....ties have failed to examine the lease agreement which, in our view, is essential. Accordingly, we are of the view that this issue requires fresh examination at the end of the AO. Accordingly, we set aside the order of the AO and restore this issue to the file of the AO/DRP with a direction to decide the same afresh by duly considering the lease agreement, certificate given by the M/s IBM and any other information/explanations that may be furnished by the assessee. 5. The next issue relates to disallowance of employees' contribution to Provident Fund. We notice that the AO has disallowed the claim on the reasoning that the assessee failed to pay employees' contribution before the due date prescribed under the Provident Fund Act. 6. The....