TaxTMI 
TaxTMI 
2019 (6) TMI 1259
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....read as under: - 1. On the facts and circumstances on law, the Learned Assessing Officer has erred and CIT(A)-20 further erred, in not admitting our claim and not allowing the deduction for Employee Contribution to PF of Rs. 24,02,980/- and ESIC of Rs. 13,01,980/- which were delayed but paid before due date of filling of Income Tax Return, which was disallowed by the Appellant itself in its computation/ original return of Income and claimed during Assessment Proceedings. 2. On the facts and circumstances on law, the Learned Assessing Officer has erred and CIT(A)-20 further erred, in considering the interest income of Rs. 3,73,78,956/- as Income from Other Sources as against the Income from business as claimed by the appell....
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....we proceed to dispose-off the issues raised in the cross-appeals. 2.3 Briefly stated the assessee being resident corporate assessee was assessed for impugned AY u/s 143(3) on 31/03/2016 wherein the income of the assessee, under normal provisions, was determined at Rs. 254.70 Lacs after certain additions / disallowances as against 'Nil' return filed by the assessee on 29/11/2013. The Book Profits u/s 115JB were determined at Rs. 2218.88 Lacs as against Rs. 2082.39 Lacs offered by the assessee. ITA 1324/Mum/2018 : Assessee's Appeal 3.1 During assessment proceedings, the assessee made a new claim towards delayed payment of Provident Fund [PF] & Employees' State Insurance [ESI] contribution for Rs. 24.02 Lacs & Rs. 13.01 Lacs respectiv....
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....ank guarantees against business obligations and the fixed deposits were made as a security for issue of such bank guarantees. Therefore, the said deposits were kept for the purposes of assessee's business and accordingly, the interest earned thereupon was to be assessed as Business Income. However, the same could not convince Ld. AO, who treated the same as Income from Other Sources. The Ld. first appellate authority confirmed the stand of Ld.AO by observing that interest income was not inextricably linked to assessee's business and interest income had no nexus with assessee's business. Aggrieved, the assessee is in further appeal before us. 4.2 Before us, Ld. AR has placed reliance on the following judicial pronouncements: - i)....
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....to restore the matter back to the file of Ld.AO for re-adjudication in the light of these submissions. The assessee is directed to substantiate the same and demonstrate the business nexus of these deposits and justify assessability of the same as business income. The ground stands partly allowed for statistical purposes. 5. Resultantly, the assessee's appeal stands partly allowed for statistical purposes. ITA 2439/Mum/2018: Revenue's Appeal 6.1 The first ground of revenue's appeal is qua deletion of disallowance of Rs. 135 Lacs on account of foreign exchange fluctuation loss. During the course of assessment proceedings, it was submitted by the assessee that the loss was crystallized liabilities due and payable in respect of termina....
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....hat ground no.1 stood covered in assessee's favor vide para-9 wherein the Tribunal, after considering the factual matrix, has allowed the assessee's claim treating the expenditure as crystallized liability. This decision has subsequently been followed in AYs 2011-12 & 2012-13 vide ITA Nos.5398- 99/Mum/2016 dated 26/04/2018. 6.5 In the aforesaid circumstances, we direct Ld. AO to ascertain that the facts in this AY are pari-materia the same as in earlier years. The Ld. AO is directed to examine the fact that the aforesaid liabilities have crystalized during impugned AY as per the terms of the settlement and these liabilities has fully been discharged by the assessee by making actual payment. Further, similar treatment has been given by....