AI Drafter 
TaxTMI 
TaxTMI 
2021 (8) TMI 510
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....nces made under normal provisions are not includable to book profits/ income computed u/s 115JB of the Act -as they are not covered by Explanation to Section 115JB of the Act. 3. The interest charged u/s 234B is wrong. 4. That the above grounds are independent and without prejudice to each other." 2. Facts giving rise to the present appeal are that the assessee filed return of income declaring income at NIL (income declared u/s 115JB at Rs. 45,95,551/-) on 29.09.2012. The case was selected for scrutiny under CASS and the assessment was framed u/s 143(3) of the Income Tax Act, 1961 ("the Act") vide order dated 30.01.2015. By framing the assessment, the Assessing Officer made various disallowances i.e. disallowance of Rs. 12,79,430/- on account of non-deduction of tax; Rs. 1,27,476/- on account of disallowance of bad debt/advance written off in the P&L A/c; and Rs. 13,97,196/- on account of commission paid in excess to agreement. Thus, the Assessing Officer computed total taxable income under normal income of Rs. 5,59,008/- under the provision of section 115JB of the Act is Rs. 73,99,653/-. The Assessing Officer observed that since the tax payable in normal in....
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....hich finally got credited to the Profit & Loss account (2) Cost of Uniforms provided to employees and they had left service without continuing employment for a reasonable lime after issue-which finally got credited to Uniforms expense. (3) Notice pay deducted from employees for not giving the mandatory notice of one month before their leaving service for days of short notice Details of such were submitted before the Authorities below and also before you at page 3 of the Paper Book already submitted before your kind self. The said page is enclosed again for your kind readyreference. The following further documents were directed to be furnished on the last date of hearing on 20th July 2021. Regarding Shortage of Garments: Ledger Account of Sales Recovery from employees for the earlier financial year (2010-111 - to establish that they are credited to the Statement of Profit and Loss Account-which is marked as Page S-1 Please find also find enclosed: The Statement of Profit & Loss for the year ended on 31-3-2011 which is marked as Page S-2 The Grouping of Sales of each State which got credited to the Statement of P....
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....ly, cost of uniform provided to the employees who have left service without continuing for a reasonable time after issue of uniform which was finally credited to the uniform expenses. Further, notice pay deducted from employees for not giving the mandatory notice of one month before their leaving service. Regarding, shortage of garments, Ld. Counsel for the assessee drew my attention to the ledger account of sales recovery of employees in the earlier Financial Year 2010-11 they were credited to the expense statement of P&L A/c. The grouping of personnel expenses which got debited to the statement of P&L A/c for the year ended on 31.03.2011 in respect of recovery on account of uniforms. 9. I have heard the rival contentions and perused the material available on record and gone through the orders of the authorities below. The moot question for determination is whether all these three items would fall within the category of debt and even if they do not fall within the category of that whether such expenses are allowable as business expenditure. The contention of the assessee has been through out that the transactions have occurred during the course of business and routed through P&....
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....ns made for meeting liabilities, other than ascertained liabilities; or (d) the amount by way of provision for losses of subsidiary companies; or (e) the amount or amounts of dividends paid or proposed ; or (f) the amount or amounts of expenditure relatable to any income to which section 10 (other than the provisions contained in clause (38) thereof) or section 11 or section 12 apply; or (fa) the amount or amounts of expenditure relatable to income, being share of the assessee in the income of an association of persons or body of individuals, on which no income-tax is payable in accordance with the provisions of section 86; or (fb) the amount or amounts of expenditure relatable to income accruing or arising to an assessee, being a foreign company, from,- (A) the capital gains arising on transactions in securities; or (B) the interest, 76[dividend,] royalty or fees for technical services chargeable to tax at the rate or rates specified in Chapter XII, if the income-tax payable thereon in accordance with the provisions of this Act, other than the provisions of this Chapter, is at a rate less than the rate specified in sub....