TaxTMI 
TaxTMI 
TaxTMI 
2024 (10) TMI 701
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.... expenditure. He erred in not appreciating that although the claim was made by the appellant under the head 'bad debts', it is nothing but the loss, which was incurred. was incidental to the regular business activity carried out by the appellant. ii. The learned CIT(A) erred in not directing the assessing officer to delete the adhoc disallowance of INR 3,95,526/- made being 20% of INR 19,77,628 of the expenses debited to P & L account under the head staff welfare expenses, marketing development expenses, conveyance expenses, travelling and conveyance expenses and miscellaneous expenses. iii. The learned assessing officer erred in levying interest under Sections 234B and 234C of the Income tax Act. iv. Each one of the above gro....
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....see had raised the issue before the Ld. CIT(A) and all necessary evidences in support to consider the issue was very much available on record. The issue raised by the assessee deserves to be considered, in order to determine the correct the computation of income in the hands of the assessee. Considering the submissions and respectfully following the decisions of Hon'ble Supreme Court in case of National Thermal Power Co. Ltd.Vs. CIT reported in (1998) 229 ITR 383 and Jute Corporation of India Ltd. Vs. CIT reported in 187 ITR 688, we admit the additional ground raised by the assessee. Accordingly, the additional grounds filed by assessee stand admitted. Brief facts of the case are as under: 3. The assessee filed its return of income for A....
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....l Govt. cannot not be made applicable for the shares of company situated in Switzerland. The Ld.AO further noted that for purchase and sale of shares in Switzerland there is hardly any inflation in Switzerland. C. 20% disallowance out of various expenses amounting to Rs. 3,95,526/-. The Ld.AO disallowed 20% of expenses incurred in cash of Rs. 3,95,526/- considering the same as being unverifiable, and not said to have been laid out or expended wholly and exclusively for the purpose of business of the assessee. Aggrieved by the order of the Ld.AO, the assessee preferred appeal before the Ld.CIT(A). 3.1. The Ld.CIT(A) upheld the disallowance made by the Ld.AO in respect of bad debts for non-satisfaction of the condition laid down u/s 36(....
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.... garden within the factory premises. It is submitted that this payment was incurred for maintenance and development and maintenance of the garden on regular basis within the factory premises, which was not properly carried out by the service provider. III. In respect to the payment made towards M/s.Urmi Chemicals, the Ld.AR submitted that this was made for supply of raw materials in the Financial Year 2010-11. He submitted that the vendor short supplied the raw materials to the extent of Rs. 19,405/-. It was submitted that, neither did the vendor completed the supply as per the requirement, nor any refund to the extent of short supply was made. The Ld.AR submitted that, the assessee accordingly wrote off the amount as it was in the nature....
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.... as well as section 36(2) of the Act. He submitted that the alternative plea of treating the above expenses, either as business expenditure or granting the same as business loss was also not verified by the Ld.CIT(A), though as specific ground was raised in ground no. 1, and detailed submission was provided in the statement of facts. Before the Ld.CIT(A), it was submitted that there is no contrary observation of the Ld.AO in respect of thse expenditure being not in the nature of business exigencies may be allowed as a business expenditure. The Ld.AR thus prayed for the claim to be considered under section 37(1) in order to compute the correct tax in the hands of the assessee. 4.5. On the contrary, the Ld.DR submitted that the claim of asse....
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....o file all the relevant document in support of the expenditure before the Ld.CIT(A). The Ld.CIT(A) is directed to verify the same and pass a detailed order on merits. Needless to say the proper opportunity of being heard must be granted to the assessee Accordingly, we allow the additional ground raised by the assessee and ground no 1 raised by the assessee is kept open. 5. Ground no. 2 is in respect of the adhoc disallowance sustained by the Ld.CIT(A) debited in the P & L A/c under the head staff welfare expenses, marketing development expenses, conveyance expenses, travelling and conveyance expenses and miscellaneous expenses. 5.1. The Ld.AR submitted that the assessee has been regularly auditing the books of accounts under the Companie....