TaxTMI 
TaxTMI 
2019 (8) TMI 1412
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....except on the issue of discrepancy in the amount of disallowance. 2. The Ld. CIT (Appeals) erred in dismissing the appeal of the appellant without giving reasonable opportunity of being heard to the appellant. 3. The Ld. CIT (Appeals) erred in dismissing the appeal of the appellant without appreciating the facts of the case and the legal position on the issues involved. 4. The Ld. CIT (A) erred in dismissing the appeal of the appellant without appreciating the grounds of appeal and written submissions of the appellant. Addition of Rs. 1,16,976/- towards Payment of Service Tax u/s 43B of the Act: 5. The Ld. CIT (A) erred in dismissing the appeal of the appellant on the issue of addition of Rs. 1,1....
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....e of payment of interest u/s.40(a)(ia) of the LT. Act,1961, without considering the facts of the case, legal decisions on the issue and the details and evidence furnished by the appellant. 11. The Ld. CIT (A) ought to have appreciated the fact that the provisions of Sec 40a(ia) are not applicable in respect of the payments towards interest by the appellant since the same were paid and no amounts remained payable at the end of the relevant year. 12. The Ld. CIT (A) ought to have appreciated the fact that the provisions u/s.40(a)(ia) of the Act are not applicable in respect of the payments towards interest by the appellant since the same were admitted by the recipients as income in their returns of income, as held by the Hon....
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....under consideration and no exempted dividend/income on the earlier investment was earned during the year. 19. The Ld. CIT (A) ought to have appreciated the fact that no interest bearing funds were utilised for the purpose of investments, the income of which is exempt from tax. 20. The Ld. CIT (A) ought to have appreciated the fact that Rule 8D of LT. Rules, 1962 cannot be applied when the assessee is maintaining regular books of accounts and got them audited by a qualified chartered accountant. 21. Without prejudice to other grounds, the CIT (A) ought to have appreciated the fact that the AO has made mistakes in application of Rule 8D of I'I' Rules while computing disallowance u/ s 14A of the Act. ....
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....o the P&L A/c but had entered it in the balance sheet and therefore, there can be no disallowance u/s 43B of the Act. He submitted that when an assessee does not make a claim of expenditure, it cannot be disallowed and brought to tax u/s 43B of the Act. In support of his contention, he placed reliance upon the following case law: i) ITA No.315/Bang/2016 in the case of Envison Enterprises Solutions P Ltd. ii) ITA No.315/Agra/2014 in the case of Shivhare Road Lines vs. ITO iii) Hon'ble Delhi High Court in the case of Jet Lite (India) Ltd (63 taxmann.com 62) 7. The learned DR, on the other hand, submitted that when the assessee is following the mercantile system of accounting, he has to debit the expenditure t....
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....ts as income in their hands and therefore, provisions of section 40(a)(ia) are not applicable. 11. The learned DR, on the other hand, supported the orders of the authorities below. 12. Having regard to the rival contentions and the material on record, I find that w.e.f. 1.4.2013, 2nd proviso has been appended to section 40(a)(ia) according to which where an assessee is not deemed to be an assessee in default under the 1st proviso to sub-section 1 of section 201, it shall be deemed that the assessee has deducted and paid tax on such sum on the date of furnishing of such income by the recipient in the said proviso. Further, it is the case of the assessee that the recipient has offered the income to tax in his hands and therefore, the....