TaxTMI 
TaxTMI 
2017 (9) TMI 1228
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.... u/s.43B of the Act. 4. The Ld. Commissioner of Income-Tax (Appeals) has erred in law and facts in confirming the disallowance of Rs. 41,58,745/- on account of employees compensation expenses. 5. The appellant craves leave of your Honour to add to, alter, amend and/or delete all or any of the foregoing grounds of appeal. 3. The assessee has also raised the following additional ground of appeal:- 1. The Learned CIT(A) ought to have appreciated that the income of Rs. 13,82,94,326/- offered by the appellant in the return has also been assessed substantively in the hands of Vascon Hadapsar Ventures for A.Y. 2008-09 by its Assessing Officer and hence the said income cannot be assessed in the hands of the appellant as the same would amount to double taxation of the same income. 4. The additional ground of appeal raised by the assessee is against assessability of profits of Rs. 13,82,94,326/- offered by the assessee in its return of income which has been so assessed substantially in the hands of assessee and also assessed in the hands of M/s. Vascon Hadapsar Ventures for the instant assessment year. The question is the hands in which the same is to be assessed. The additional ....
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....ed, then no disallowance is to be made under section 14A of the Act. Reliance was placed on the ratio laid down by the Hon'ble Bombay High Court in HDFC Bank Ltd. Vs. DCIT (2016) 383 ITR 529 (Bom). Another plea raised by the assessee before us was that strategic investments were made by the assessee in the said Special Purpose Vehicles i.e. being subsidiaries, joint ventures and partnership firms. The profits arising from investments of such Special Purpose Vehicles were shared by the assessee and other JV partners and the same should be excluded from total investments considered for the disallowance under section 14A r.w.s. 8D of the Rules. 10. The learned Departmental Representative for the Revenue on the other hand, placed reliance on the orders of authorities below. 11. We have heard the rival contentions and perused the record. The issue which arises in the present appeal is two-fold i.e. disallowance made under section 14A of the Act on account of interest expenses which has been worked out under Rule 8D(2)(ii) of the Rules at Rs. 1,06,77,119/- and one half percent of average of the value of investments for administration purpose at Rs. 20,62,531/-. The first plea raised by....
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.... and community celebrations, etc. Further, certain Donations were made to various organizations viz. Rotary Club, Educational Institutions, etc. The assessee claims that the said exercise was to build and establish better image of the company in the eyes of public. The assessee claimed that the expenditure was allowable as business expenditure under section 37(1) of the Act and the provisions of section 80G of the Act were mutually exclusive to section 37(1) of the Act. The Assessing Officer however, disallowed the claim of assessee in the absence of any receipts on account of 80G. 15. The CIT(A) upheld the order of Assessing Officer. 16. The assessee is in appeal against the order of CIT(A). 17. The learned Authorized Representative for the assessee stressed before us that the Donations were paid to various organizations around his building sites in order to build up its image, which in turn, would help in its business activities and the expenditure incurred for business exigency, was to be allowed as business expenditure. He further pointed out that certain certificates under section 80G of the Act were available and the said Donations are to be allowed in the hands of assesse....
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....c at large, where the tenements built by the assessee were to be picked up by the public. Hence, the expenditure incurred by the assessee in this regard is duly to be allowed as business expenditure in the hands of assessee. The facts before the Hon'ble High Court of Allahabad in Electra India Ltd. Vs. CIT (supra), where advertisement material was given in the last three days of accounting year and where it was not possible to publish or advertise the name through medium of Board, then such expenditure was held to be being marginal advertisement content and was disallowed in the hands of assessee. However, the facts before us are at variance and we find no merit in the reliance placed upon by the learned Departmental Representative for the Revenue in this regard. Accordingly, we direct the Assessing Officer to allow the expenditure under section 37(1) of the Act. Here, it may be pointed out that in some cases, the assessee has receipts of donations under section 80G of the Act. The Assessing Officer is directed to verify the same and allow the claim of such receipts under section 80G of the Act. Accordingly, the ground of appeal No.2 raised by the assessee is allowed. 20. Now, com....
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.... as no Fringe Benefit Tax (FBT) was paid on the said sum of Rs. 41,58,745/-. The plea of assessee that allowability of ESOP expenses and payment of FBT for ESOPs were two different aspects, was not accepted. The assessee also explained that shares were allotted in assessment year 2010-11 and hence, no FBT was due in the year under consideration. The claim of assessee was not allowed by the Assessing Officer and the CIT(A). 24. Before us, the learned Authorized Representative for the assessee pointed out that the Special Bench of Bangalore Tribunal in Biocon Ltd. Vs. DCIT (LTU) reported in 144 ITD 21 (Bang.) and the Pune Bench of Tribunal in Sandvik Asia Pvt. Ltd. Vs. ACIT in ITA Nos.1841 & 1842/PN/2012 and in cross appeals in ACIT Vs. Sandivk Asia Pvt. Ltd. in ITA Nos.2053 & 2054/PN/2012, relating to assessment years 2002-03 & 2003-04, order dated 31.12.2014 had allowed the deduction on account of ESOP and hence, the same is to be allowed as revenue expenditure. 25. The learned Departmental Representative for the Revenue on the other hand, placed reliance on the orders of authorities below. 26. We have heard the rival contentions and perused the record. The limited issue which a....