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2016 (5) TMI 1472
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....ing the same. The disallowance and addition made is unjustified, illegal or excessive. 3. Under the facts and circumstances, Ld. A.O. has erred by disallowing the provision of gratuity of Rs. 8,72,000/-, further, CIT(A) erred by sustaining the same. The disallowance made is unjustified, illegal or excessive. 4. Under the facts and circumstances, Ld. A.O. has erred by disallowing pension leave salary of Rs. 15,32,714/-, further, CIT(A) erred by confirming the disallowance to extent of Rs. 9,24,253/-. The disallowance made/confirmed is unjustified, illegal or excessive. 5. Under the facts and circumstances, Ld. A.O. has erred by disallowing Provision of Agreement Arrear of Rs. 13,18,153/-, further, CIT(A) erred by sustaining the same. The disallowance made is unjustified, illegal or excessive. 6. Under the facts and circumstances, ld A.O. has erred by making addition of interest income of Rs. 89,563/-, further, CIT(A) erred by confirming the addition to extent of Rs. 78,563/-. The addition made/sustained is unjustified, illegal or excessive. 7. Under the facts and circumstances, ld A.O. has erred by making addition of Rs. 96,342/- on accou....
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....rsons covered by the provisions, deterrent to ensure compliance, suppress the mischief and advance the remedy. This provision applicable only on both the amounts payable and paid. VAT is not a conclusive indicator for deciding whether the contract was for sale or work. Therefore, he confirmed the addition of Rs. 6,35,144/-. 3.2 Now the assessee is in appeal before us. The ld AR of the assessee has submitted that the printing and stationary expenses is for purchase of cheque books, passbooks, specimen signature cards, ledgers, fixed deposit books, withdrawal/deposit forms etc., on which VAT had been paid by the assessee on such purchases. The raw material was supplied by the supplier; therefore, expenditures are in the nature of sales to the appellant. The CBDT in circular No. 681 dated 08/3/1994 has clarified in para 7(vi)(b) that where contractor undertakes to supply any article or thing fabricated accounting to specifications given by the Govt. or any other specified persons and the property in such article or thing passes to the government or such person only after such article or thing is delivered, the contract will be contract for sale and shall be outside the purview of S....
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....ed by the ld DR during the course of hearing. Therefore, we allow the assessee's appeal on this ground. 4. Ground No. 3 of the assessee's appeal is against disallowance of provisions of gratuity of Rs. 8,72,000/-. The ld Assessing Officer claimed gratuity expenses of Rs. 8.72 lacs during the year under consideration. The ld Assessing Officer disallowed this payment as prescribed authority had not approved this fund, which has been confirmed by the ld CIT(A) on similar findings. 4.1 The ld AR of the assessee has submitted that this issue has been considered by the Hon'ble Bench in assessee's own case in ITA No. 1032/JP/2011 A.Y. 2008-09 order dated 14/08/2014 and allowed the appeal in favour of the assessee. The facts and circumstances of the present case are identical, therefore, same may be allowed. 4.2 The ld DR has vehemently supported the orders of the lower authorities. 4.3 We have heard the rival contentions of both the parties and perused the material available on the record. The facts of the present case and similar additions were made in A.Y. 2008-09 by the ld Assessing Officer, which has been deleted by the Coordinate Bench in assessee's own by relying on the ....
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....ssee's appeal on this ground. 6. Ground No. 5 of the assessee's appeal is against not allowing the provision of agreement arrear of Rs. 13,18,153/-. The ld Assessing Officer disallowed out of total salary claimed at Rs. 1.00 crore by the assessee in P&L account. As paid by the assessee at Rs. 86,81,847/- and balance amount has been shown as provision, which has been confirmed by the ld CIT(A) on the ground that which required future approval and it was contingent liability for the current year. The fact that same was paid in April, 2012 also formed the finding, therefore, he dismissed the appeal. 6.1 The ld AR of the assessee has submitted that this issue has been considered by the Hon'ble Bench in ITA No. 1032/JP/2011 order dated 14/08/2014 for A.Y. 2008-09 in assessee's own case, wherein it has been held that this salary has been crystallized by way of agreement settled between the administration, employees and union. The appellant is a district level cooperative bank, do revision of the wages and salaries of the staff at State level, effective for previous five years, that results into arrears of salary. After approval of the Finance Department of the State Government, the....
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....een held that if rates of tax are remained same in both the years, no point to consider minor tax effect in the appeals. Therefore, he prayed to delete the addition. 7.2 The ld DR has vehemently supported the order of the ld CIT(A). 7.3 We have heard the rival contentions of both the parties and perused the material available on the record. The assessee had admitted this difference on the basis of 26AS and disclosed the differences of interest income of Rs. 78,563/- in A.Y. 2010-11 and there is no revenue loss if the same amount is considered in A.Y. 2010-11 by the assessee. The Hon'ble Supreme Court decision in the case of Excel Industries (supra) is squarely applicable. Therefore, we delete the addition confirmed by the ld CIT(A). 8. Ground No. 7 is against confirming the addition of Rs. 32,489/-. The ld Assessing Officer disallowed Rs. 96,342/- on account of excess cash reserve. This amount is not payable on expenditure. The ld CIT(A) restricted this addition of Rs. 34,489/- by observing that as per balance sheet as an amount of Rs. 96,342/- had been shown as excess cash reserve. This amount is not payable on expenditure. It is seen that Rs. 63,853/- related to earl....
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.... has held that maintenance of temple with the help of Pujari, the expenditure is not a personal benefit of any person and nor of a purely religious nature, therefore, he prayed to confirm the order of the ld CIT(A). 10.3 After considering both sides and facts of the case, the Lord Ganesha is the God of Wealth as considering in Indian methodology. The assessee also deals in banking. It is a fact that all the banks generally participate in Ganesh Mahotasava, which motivates the employee as well as maintain good relation with the customers. Therefore, it is an allowable expense U/s 37 of the Act. The case laws relied upon by the assessee is also applicable. Accordingly, order of the ld CIT(A) on this ground is confirmed. 11. Ground No. 2 of the revenue's appeal is against deleting the addition of Rs. 94,84,714/- on account of leave salary encashment fund U/s 43B(f) of the Act. The ld Assessing Officer observed that the assessee had shown Rs. 94,84,740/- as leave salary encashment fund under "Funds and Reserve" in the balance sheet as against Rs. Nil shown in the assessment year 2008-09. The ld Assessing Officer gave reasonable opportunity of being heard on this issue. It was sub....
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....l available on the record. The AR of the assessee has clarified in detail that it is a clerical mistake before the ld CIT(A), who had verified from the record, which has also been clarified during the course of hearing by the ld AR, which has not been controverted by the ld DR. Accordingly, we uphold the order of the ld CIT(A). 12. In the result, the appeal of the assessee is allowed and appeal of the revenue is dismissed. Order pronounced in the open court on 24/05/2016. ============= Document 1 आपके पतà¥à¤° कà¥à¤°à¤®à¤¾à¤‚क जेकेà¤à¤¸à¤¬à¥€ / फा/ पà¥à¤° à¤à¤µà¤‚ का / 2009-10/1800 दिनांक 03.06.2009 के संबंध में लेख है कि आपको पूरà¥à¤µ में लेख है कि आपको पूरà¥à¤µ में à¤à¥‡à¤œà¥‡ गये बै....