AI Drafter 
TaxTMI 
TaxTMI 
2024 (2) TMI 452
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....t of disallowance u/s 14A of the Income Tax Act, 1961 (the Act) read with the provisions of Rule 8D of the Income Tax Rules, 1962 ("the Rules). 3. Whether on the facts & circumstances of the case and in law, the Ld. CIT (A) has erred in deleting the addition of Rs, 30,05,853/- made by Assessing Officer being ROC fee incurred, for increase in the authorized share capital and not for the issuance of bonus share? 4. Whether on the facts & circumstances of the case and in law, the Ld. CIT (A) has erred in deleting the addition of Rs. 6,86,326/- made by Assessing Officer on a/c of expenditure us 37(1) for purchase of trademark. 5. Whether on the facts & circumstances of the case and in law, the Ld. CIT (A) has erred in-deleting the addition of Rs. 21,87,126/- made by Assessing Officer on a/c of write off of sundry creditors holding that the liability is recognized as payable in the books of account of the assessee. 3. The assessee is a public limited company and was incorporated on 01st May 1995. Its shares are listed on two stock exchanges of India. The Company is primarily engaged in providing online and offline services through its portals like Nau....
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....e judgment of Hon'ble Karnataka High Court ('HC') vide its order dated November 11, 2020] and Bangalore ITAT (special bench) wherein it was that ESOP compensation is revenue in nature and hence, allowable as a deduction. 11. Since the matter stands adjudicated in the case of the assessee from the earlier years, in the absence of any change in the factual matrix and legal preposition, we affirm the order of the ld. CIT(A) on this issue. Disallowance u/s 14A : 12. During the year under consideration, the assessee had following investments in mutual funds and made disallowance under section 14A as follows: Particulars Investment as on 31.03.2013 Investment as on 31.03.2013 Dividend income Considered for Section 14A disallowance Mutual Growth:Gain plan Fund-Capital 1,16,42,05,068 1,47,55,72,688 NIL Not considered since exempt income was not earned. Further Respondent is not eligible earn dividend income on capital gain plan type of mutual fund Mutual Fund Dividend plan 42,88,75,169 94,21,90,930 8,72,80,782 Disallowance of INR 35,08,429 made u/s ....
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....w for ready reference: "13. We have carefully considered the rival contention and perused the orders of the lower authorities. On careful consideration of the order of the learned CIT(A), it is noted that he has held that only those investments on which dividend income is received during the year should be considered for the purpose of working out average investment for computation of disallowance under rule 8D in accordance with section 14A of the act. The above view has been upheld by the honourable Delhi High Court in case of ACB India Ltd versus a CIT 374 ITR 108 (Delhi) (2015). In view of this we do not find any infirmity in the order of the learned CIT - A accordingly, ground number two of the appeal is dismissed." 17. Since the matter stands adjudicated in the case of the assessee from the earlier years, in the absence of any change in the factual matrix and legal preposition, we affirm the order of the ld. CIT(A) on this issue. ROC Fee : 18. During the year under consideration the authorized share capital of the company was increased from INR 60 crores to INR 120 crores to issue of bonus shares (5,45,90,512 equity shares of INR 10/-....
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....us authorities as per the business requirement of the company. These expenses have not resulted in benefit of any enduring nature to the Respondent therefore it is revenue in nature expenditure and fully allowable to the Respondent. The Assessing Officer treated the same as intangible assets and disallowed the expenditure of INR 7,84,372/- but allowed the depreciation INR 98,046/- ( para 6 of the AO). 22. The Ld. CIT(A) deleted the addition holding that from the invoices, it is clear that such expenses have been incurred as professional and legal charges on matters relating to trademark advertisement, reporting and reviewing of registration of trademark and preparation of report, documentation. Such expenditure does not create an asset or an advantage which makes it capital in nature. 23. Relevant extract of the order of Ld. CIT(A) is as below : "9.2 I have examined the issue. From the invoices, it is clear that such expenses have been incurred as professional and legal charges on matters relating to trademark advertisement, reporting and reviewing of registration of trademark and preparation of report, documentation and representing the case relati....