TaxTMI 
TaxTMI 
TaxTMI 
2023 (4) TMI 1093
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.... in Purchase Related Expenses and therefore the addition is liable to be deleted. 2. That Learned CIT(A) erred in facts as well as in law in not deleting the addition to the extent of Rs.2104250/-u/s 40(a)(ia) on account of payment made for Filing Fee with ROC, Audit Fee and Consultancy Charges and therefore the addition is liable to be deleted. 3. For that the appellant craves leave to add, alter, amend or modify any or all the grounds of appeal prior to or during the course of hearing." I.T.A. No. 361/GTY/2019 Meghalaya Power Generation Corporation Limited: "1. That Learned CIT(A) erred in facts as well as in law in not deleting the addition to the extent of Rs. 411252/- on account of payment made for POL included in Purchase Related Expenses and therefore the addition is liable to be deleted. 2. That Learned CIT(A) erred in facts as well as in law in not deleting the addition to the extent of Rs.475750/-u/s 40(a)(ia) on account of payment made for Filing Fee with ROC, Audit Fee and Consultancy Charges and therefore the addition is liable to be deleted. 3. For that the appellant craves leave to add, alter, amend or modify any or all the grounds of appeal prior to or d....
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.... the outset, ld. Counsel for the assessee vehemently argued referring to the written submissions placed for each of the appeals and on the other hand. Ld. D/R supported the order of both the lower authorities. 5. We have heard rival contentions and perused the records placed before us. First, we take up ITA No. 360/GTY/2019 in the case of Meghalaya Power Transmission Corporation Limited. ITA No. 360/GTY/2019 in the case of Meghalaya Power Transmission Corporation Limited: 6. The first issue for our consideration raised by the assessee in ground no. 1 relates to disallowance of purchase related expenses of Rs. 1,44,242/-. We notice that the assessee is a company engaged in power transmission and hundred percent holding is with Meghalaya Energy Corporation Ltd. and its nominees. Loss of Rs. 2,98,51,729/- declared in the e-return filed on 07.10.2017 and the same was subjected to complete scrutiny. One of the issues for consideration by ld. AO is regarding purchase related expenses of Rs. 1,44,242/-. The assessee claimed that the expenditure is incurred relating to petrol, oil, lubricants for the employees of divisional office for necessary purchase for urgent work and line maintena....
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....ssee in ground no. 1 relates to disallowance of purchase related expenses of Rs. 4,11,252/-. We notice that the assessee is a company engaged in power transmission and hundred percent holding is with Meghalaya Energy Corporation Ltd. and its nominees. Loss of Rs. 37,15,11,256/- declared in the e-return filed on 07.10.2017 and the same was subjected to complete scrutiny. One of the issues for consideration by ld. AO is regarding purchase related expenses of Rs. 4,11,252/-. The assessee claimed that the expenditure was incurred relating to petrol, oil, lubricants, for the employees of divisional office for necessary purchase for urgent work and line maintenance. Ld. AO without finding any defect in such claim made ad-hoc disallowance and the same was confirmed by ld. CIT(A) also. We, however, considering the fact that the assessee being a limited company is subject to statutory audits, regular books are maintained and the alleged expenses are towards petrol, oil, lubricants for the employees of divisional office, do not find any reason to doubt the genuineness of the said expenditure. We, therefore, reverse the finding of ld. CIT(A) and delete the said ad-hoc disallowance of purchase....
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....e amendment is brought in Section 40(a)(ia) of the Act and as per the said amendment 30% of any sum payable to a resident, on which tax is deductible at source under Chapter XVII-B and such tax has not been deducted or, after deduction, has not been paid on or before the due date specified in Section 139(1) of the Act, the said sum subjected to proviso to Section 40(a)(ia) of the Act shall not be deducted in computing the income chargeable under the head 'Profits and gains of business or profession'. Since the year under appeal is AY 2016-17 therefore, the said amendment is applicable and therefore, the disallowance u/s 40(a)(ia) of the Act needs to be sustained only to the extent of 30% i.e. Rs. 5,58,238/- as has been requested by ld. Counsel for the assessee to which there is no dispute at the end of the Revenue. Thus, ground no. 1 raised by the assessee is partly allowed. 8.1. Ground no. 2 relates to disallowance of bad debts written off of Rs. 7,86,63,132/-. Ld. CIT(A) has dealt with this issue in para 6.2 & 6.3 of the impugned order and same reads as follows: "6. Ground No 3. The ground is against disallowance of provision for bad debt amounting to Rs. 7,86,63,132/- 6.1....
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....t was actually written off in the year as irrecoverable. Be that as it may, assessee had netted of this year provision with amount of earlier year which is reversed in this year. There is no relationship between the provision of earlier year with the provision for this year. The claim of assessee cannot be allowed. Ground taken is dismissed" 8.2. Further, we notice that before us the claim of the assessee is that the alleged sum has not been debited to profit and loss account but is linked to the reversal of opening balance lying in provision for doubtful debts and therefore, disallowance was uncalled for. Since this claim was not made by the assessee before ld. CIT(A), we deem it proper to restore this issue to the file of ld. AO before whom the assessee shall file necessary evidence in support of its claim that the alleged sum has not been claimed as expenditure in the profit and loss account towards the provision of bad doubtful debts. Needless to mention that proper opportunity of being heard should be provided to the assessee. The assessee is also directed to remain vigilant and file necessary documents, if considered necessary, in support of its grounds of appeal and shoul....
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....ciate concerns of MeECL, MePTCL and MePGCL. Before us, the assessee has not filed any reconciliation statement. Since it is an admitted fact that there is a discrepancy in the inter-company payable and the inter-company receivable, we deem it proper to restore this issue to ld. AO before whom the assessee shall file complete reconciliation statement so as to explain that there is no difference of the alleged amount of Rs. 58,48,88,574/-. In case the assessee is able to reconcile the said difference to the satisfaction of ld. AO, the alleged addition shall stand deleted. Thus, ground no. 3 is allowed for statistical purposes. 8.5. Ground no. 4 is general in nature which needs no adjudication. 8.6. In the result, the appeal filed by the assessee in ITA No. 362/GTY/2019 is partly allowed for statistical purposes. ITA No. 363/GTY/2019 Meghalaya Energy Corporation Limited (Formerly known as Meghalaya State Electricity Board): 9. Through ground no. 1 the assessee has challenged the action of ld. CIT(A) confirming the disallowance of total expenditure of Rs. 17,36,28,423/- claimed by the assessee in the profit and loss account. We notice that based on the information available and the....
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....2019 is allowed for statistical purposes. ITA No. 364/GTY/2019 Meghalaya Energy Corporation Limited (GPF Trust): 10. Ground no. 1 relates to disallowance u/s 14A of the Act. The assessee has not offered any suo moto disallowance in the computation of income. Ld. AO on observing that the investments being made, computed the disallowance u/s 14A of the Act at Rs. 3,24,20,575/-. In the profit and loss account only two types of expenditure has been claimed; firstly, towards interest accrued on provident fund deposits from its employees and secondly, the bank charges of Rs. 351/-. When the matter travelled before ld. CIT(A), he on observing that exempt income is of Rs. 48,51,419/- curtailed the disallowance u/s 14A of the Act to the extent of exempt income in view of the settled judicial propositions and the disallowance so confirmed by ld. CIT(A) is in challenge before us. 10.1. We notice that the status of the assessee is an association of persons of the employees of the Meghalaya Energy Corporation Ltd. Further, we notice that the provident fund deducted from the employees is appearing on the liability side of the balance sheet which also shows the opening balance, subscription re....