2015 (9) TMI 1670

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.... there is no need of any adjudication. We have heard the Ld. Counsel and Ld. DR in detail. 2. Ground No.2 : This ground is pertaining to disallowance of provision for leave encashment of Rs. 11,35,943/- U/s. 43B(f) of the Income Tax Act [Act]. In appeal, Ld. CIT(A) upheld the disallowance stating that the decision of the Calcutta High Court in the case of Exide Industries Ltd., Vs. Union of India [292 ITR 470] has been stayed by the Supreme Court clarifying that assessee must pay the tax as if Section 43B(f) is on the statute though they are entitled to make a claim in their return of income. 3. After considering the rival contentions, we do not see any reason to interfere with the order of the Ld. CIT(A). Even though it is a fact that ....

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....rnished and assessee's contentions were not accepted. Ld. CIT(A) while agreeing that the details of payments to whom they are made were furnished before the AO, but did not acknowledge, even though they were furnished before the CIT(A). In view of this, it was submitted that invoices issued by agents to whom payments have been made, invoices of overseas shipping companies and bills of lading should be verified by the AO in order to examine assessee's contentions. In this regard, Ld. Counsel filed a request for admission of additional evidence, placing various documents in the Paper Book, that they be entertained. As far as principles of law are concerned, it was submitted that payments made by assessee to the agents of non-resident ship lin....

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..... Therefore, in case the payments are made to local shipping agents of non-resident ship liners, then AO is directed to exclude the amount as provisions of Section 40(a)(ia) does not apply to the payments. With these directions, ground is considered allowed for statistical purposes. 7. Ground No.4: This ground pertains to disallowance of payment made towards transport charges. AO found that assessee made payments towards freight charges. Out of the payments made, AO worked out the amounts on which TDS was not made at Rs. 75,06,155/- and disallowed such amounts U/s. 40(a)(ia). 8. Before the CIT(A) it was explained that in some cases, there is no justification for disallowance since the respective payees had obtained certificates U/s. 197....

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....hi enterprises - Rs. 33,422/- 11. Subject to verification of the actual disallowance to be made, it was submitted that CIT(A) should have appreciated the claims made with reference to the market practice in respect of consignment sales where the consignees incur expenditure initially and obtain reimbursement from the consignor and accordingly, Ld. CIT(A) ought to have directed the deletion of disallowance. Ld. DR supported the order of AO and CIT(A). 12. After examining the rival contentions, we are of the opinion that AO has to verify whether the amounts confirmed by the CIT(A) are correct or not? As submitted, there seems to be discrepancy in the amounts as confirmed by the CIT(A), wherein AO it seems has disallowed only lesser amount....