TaxTMI 
TaxTMI 
TaxTMI 
2019 (9) TMI 896
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.... 83,231 83,231 83,231.00 Gauges Bourdon (India) Pvt. Ltd. 178,785 178,785 178,785.00 Machinery Sales Corporation 14,832 14,832 14,832.00 Super Marine Insulation Works 231,735 231,735 231,735.00 Total 508,583/- 508,583/- 508,583/- 3. The revenue on record held that the assesee could not furnish any confirmation from the traders. Therefore the assessing officer resorting to section 41(1) treated as them ceased liability. The Ld AR during the appellate proceedings contended that these creditors are shown as outstanding liability in the balance sheet. The assessee acknowledges his liability to pay and therefore the liability still exists and the provisions of section 41(1) of the I.T. Act. From the detailed submitted it is seen that the credit balances are from the parties mentioned above are outstanding for more than three years. While the revenue held that no payment have been made to the parties till date. The ld. AR contended that the outstanding credits cannot be unilaterally written off as non-payable by the Revenue as the assessee is liable to pay these amounts as and when demanded. It was also argued that the action of the Revenue is not tenable in the light....
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....tions of various gift items to the employees and professionals. The AO further noted that the distribution of the items was not ascertainable from the record and they cannot be held to be incurred for the purpose of business only. The AO is therefore disallowed 25% of the expense i.e. Rs. 6,78,200/- for being not incurred for business purpose. The ld. CIT (A) confirmed the disallowance on the grounds that there were purchase of gold coins too. During the appellate proceedings, before us the AR has taken us through the copies of invoices, vouchers etc. It was also argued that there was increased turnover and also increased profit during the year and hence increase in the festival expenditure cannot be treated as disallowable expenditure. It was argued that the books of account have been duly audited and no discrepancy was found out by the Revenue. The ld. AR also argued that without bringing anything on record the disallowance made by the Assessing Officer on adhoc basis cannot be sustained. The ld. DR relied on the orders of the ld. CIT (A). 6. We have gone through the facts on record and find that the only reason, the Revenue authorities disallowed is the "increase" in expenses ....
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....rbitration award. The fee is paid to arbitrators who perform the legal functions. Hence, it cannot be said that the company is not getting the services of the arbitrators and dealing with their disputes regarding the contracts etc. Since, the amount is in the nature of professional services sought by the legal professionals involved in the profession/occupation/vocation of arbitration, the amount is liable to TDS as per the provisions of Section 194J of the Act. We also find the case laws referred by the ld. AR have no applicability on the facts of the case. Hence, keeping in view, the provisions of the Act, we uphold the decision of the ld. CIT (A) on this ground. 9. Ground No.5 & 6 pertains to disallowance on account of vessel repair & maintenance u/s 40(a)(ia). Brief facts of the issue are that the assessee company has made following payments for repair & maintenance without deducting TDS: (I) Ahm Marine LLC Rs. 77,295/- (II) DPS Offshore Rs. 3,24,607/- (III) Fugro Seastar AS/Fugro Statellite Positioning AS Rs. 3,01,725/ - (IV) Fugro Seastar AS/ Fugro Statellite Positioning AS Rs. 3,21,840/- (V) Fugro Seastar AS/ Fugro Statelllte Positioning AS....
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.... prospecting for, or extraction or production of, mineral oils, a sum equal to ten per cent. of the aggregate of the amounts specified in sub-section (2) shall be deemed to be the profits and gains of such business chargeable to tax under the head Profits and gains of business or profession": Provided that this sub-section shall not apply in a case where the provisions of secti6h 42 or section 44D or section 115A or section 293A apply for the purposes of computing profits or gains or any other income referred to in those sections. (2) The amounts referred to in sub-section (1) shall be the following, namely:- (a) the amount paid or payable (whether in or out of India) to the assessee or to any person on his behalf on account of the provision of services, and facilities in connection with, or supply of plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils in India; and (b) the amount received or deemed to be received in India by or on behalf of the assessee on account of the provision of services facilities connection with, or supply of plant and machinery on hire Used, or to be used, in the prospecting for,....
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....he Assessing Officer shall determine the appropriate portion of the sum chargeable to tax, as mentioned in sub-section (1) of section 195, to ascertain the tax-liability on which the deductor shall be deemed to be an assessee in default under section 201 of the Act. It has been further clarified that such appropriate portion of the said sum will depend on the facts and circumstances of each case taking into account the nature of remittances, income component therein or any other fact relevant to determine such appropriate proportion. 4. As disallowance of amount under section 40(a)(i) of the Act in case of a deductor is interlinked with the sum chargeable under the Act as mentioned in section 195 of the Act for the purposes of tax deduction at source, the Central Board of Direct Taxes, in exercise of powers conferred under section 119 of the Act, hereby clarifies that for the purpose of making disallowance of 'other sum chargeable' under section 40(a)(i) of the Act, he appropriate portion of the sum which is chargeable to tax under the Act shall form the basis of such disallowance and shall be the same as determined by the Assessing Officer having jurisdiction for the purpos....