2023 (10) TMI 512

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....three appeals together and to pass a consolidated order for the sake of convenience. 3. First, we shall take up appeal of the assessee in ITA No. 499/PUN/2013 for A.Y. 2017-18. 4. Ground No. 1 raised by the assessee challenging the action of CIT(A) in confirming the order of AO in levying interest for delayed payment of TDS to Central Government account in the facts and circumstances of the case. 5. We note that the said issue was discussed by the AO in para No. 11 of the assessment order dated 31-12-2019 passed u/s. 143(3) of the Act. On perusal of the same, it is observed that the assessee treated interest paid for delayed payment of TDS as business expenditure and claimed deduction thereon. According to the AO, the assessee is well a....

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.... note that the assessee claimed Rs. 1,00,00,000/- paid on account of penalty levied by the RBI for non adherence to certain directives issued by the RBI. According to the AO, no provision in the statue allows the claim of payment as fine/penalty as business expenditure. The assessee explained the said payment on account of penalty is a nominal payment but does not lead to criminal prosecution as it was imposed on account of non adherence of certain directives in relation to operation of banks. The AO disallowed the above said amount and added to the total income of the assessee by denying the claim of assessee as business expenditure. The CIT(A) discussed the issue in detail regarding the allowability of penalty paid to RBI, but however, re....

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....ee bank issued equity shares to its employees under ESOP Scheme at discount amounting to Rs. 147,63,91,803/-. The assessee explained the said discount as business expenditure. The assessee claimed the said discount is nothing but employee stock option compensation expenses allowable u/s. 37(1) of the Act. According to the AO, no sufficient documentary evidences furnished by the assessee in support of the claim as business expenditure. Further, he observed the disallowances were made on the same issue in earlier years and attained no finality as were pending before the Hon'ble High Court of Bombay. By following the assessment order of earlier years he denied the deduction in respect of discount on equity shares under ESOP and added the same ....

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....is broken period interest, is not allowable as expenditure. The AO disallowed an amount of Rs. 7,54,88,125/- on account of broken period interest levied by the assessee and added the same to the total income of the assessee. The CIT(A) by placing reliance in the case of Prathamik Shikshan Sahara Bank Ltd. in ITA No. 491/PUN/2015 of ITAT Pune Benches held that the assessee is entitled to claim same as business expenditure. We note that on perusal of the impugned order that Pune ITAT Benches in order to come to such conclusion in the case of Prathamik Shikshan Sahara Bank Ltd. (supra) placed reliance in the case of HDFC Bank Ltd. reported in 366 ITR 505 (Bom.) and American Express International Banking Corporation reported in 258 ITR 601 (Bom....