TaxTMI 
TaxTMI 
TaxTMI 
2020 (4) TMI 253
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....efore the due date for filing the return of income by the appellant and consequently no disallowance could have been made by the learned assessing officer, on the facts and circumstances of the case. 3. The learned Authorised Representative submitted the reasons for filing the additional grounds of appeal for which revenue has no serious objections. Hence the additional grounds of appeal of assessee are admitted and the assessee has raised following the grounds of appeal as under : 1. The order of the learned Commissioner of Income-tax (Appeals) - Hubballi passed under Section 250 of the Act in so far as it is against the Appellant is opposed to law, weight of evidence, probabilities, facts and circumstances Of the Appellant's 2. The Appellant denies itself liable to be assessed over and above the business loss reported by the appellant of Rs. 20,68,678/-, on the facts and circumstances of the case. 3. The learned Commissioner of Income-tax [Appeals] erred in upholding the disallowance of additional depreciation on computer amounting to Rs. 61,427/- made by the learned assessing officer, on the facts and circumstances of the case. 4. The learned Commissioner of Income-....
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....e's has claimed additional depreciation on computers, whereas as per the provisions of Section 32 of the Act, the additional depreciation is allowed only on block of plant and machinery and disallowed the claim. Similarly, the Assessing Officer made disallowance of delayed payment of PF and also made disallowance under section 14A r.w. Rule 8D(2). Whereas the Assessing Officer has found that the assessee has made investment, in shares and received dividend of Rs. 2,04,708. The Assessing Officer has not accepted the claim of non-incurring of expenditure for earning tax free income and calculated the disallowance under Section 14A r.w. Rule 8D(2) of Rs. 5,38,069 including administrative expenses of Rs. 38,857. Similarly, the assessee has made interest payment to Tata Capital of Rs. 80,016 without deduction of tax at source. Hence the Assessing Officer applying the provisions of Section 40(a)(ia) of the Act made disallowance. The assessee has provided interest free loans to sister concerns and since the interest paid on money borrowed is 12% p.a.. The Assessing Officer observed that there is no business connection on advancing of interest free loans and disallowed Rs. 5,17,058 under ....
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....challenged the disallowances made by the Assessing Officer for irregularities and non-production of evidences. First we shall take up the additional ground of appeal in respect of delayed payments of employees contribution to Provident Fund. We found that the assessee has made deposits within the financial year but the fact remains that this ground of appeal was not raised before the CIT (Appeals). Accordingly, we restore this ground of appeal to the file of CIT (Appeals) to adjudicate on merits and allow allow additional ground of appeal for statistical purposes. Whereas in respect of claim of additional depreciation, the learned Authorised Representative submitted that the assessee has evidences and proof that the computer is an essential part of plant and machinery installed at the factory premises. We found the assessee has not produced any evidence in the appellate proceedings. Hence we consider it proper to remit the disputed issue to the file of CIT (Appeals) for adjudication considering the evidences filed by the assessee. On next issue of disallowance under Section 14A r.w. Rule 8D(2) of restricting the disallowance of expenditure to the extent of dividend income, the lear....
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....allowance under Section 40(a)(ia) of the Act with respect to interest paid to Tata Capital Ltd., the learned Authorised Representative submitted that the recipient has offered income in their assessment, therefore, there is no requirement to make addition. When a query was raised to the learned Authorised Representative regarding obtaining of Certificate from Auditor in Form 26A that the recipient has offered the income in their Assessment. The learned Authorised Representative submitted that the information is available with the assessee and prayed for an opportunity to substantiate before lower authorities. Accordingly to meet the ends of justice, we restore this issue to the file of CIT(Appeals) to consider the submissions of the assessee duly support with evidence of Form 26A and adjudicate on merits. 9. On the last disputed issue, in respect of disallowance of interest on advances provided to the sister concern. The learned Authorised Representative submitted that the assessee has adequate funds and out of surplus funds, the advances are provided to the sister concerns due to business connection. But the Assessing Officer has disallowed interest @ 12% p.a. The contention of t....