2026 (3) TMI 1553

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....ction 143(3) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') relating to the Assessment Year 2017-18. 2. Brief facts of the case are that the assessee is a company engaged in manufacturing and trading of soft drink concentrates and mixes. The assessee filed its return of income for Asst. Year 2017-18 on 28.10.2017 declaring total income of Rs. 3,12,22,940/-. The case was selected for scrutiny assessment and made following disallowances: (a) Disallowance u/s. 14A read with Rule 8D of Rs. 33,81,941/- (b) Late payment of PF and ESIC of Rs. 16,90,052/-. 3. Aggrieved against the additions, the assessee filed appeal before the Addl. CIT(A) who has confirmed the addition made by the AO, thereby dismissed ....

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....facts in holding the appeal as dismissed in as much as that disallowance of depreciation of Rs. 2,04,268 as per Para-5.1 has been allowed resulting appeal of the assessee having been allowed partly. 7. Appellant craves leave to add, to alter and or modify any ground of appeal." 5. We have heard rival submissions and perused the materials available on record. 6. Regarding Ground Nos. 1 to 4 namely disallowance u/s. 14A of the Act. The brief facts of the case are that during the year the assessee company earned dividend of Rs. 23,32,859/- (on shares of Rs. 12,12,290/- and on Mutual Funds Rs. 11,20,569/-) and interest on tax from Bonds of Rs. 3,12,12,046/-. The assessee's investment in various taxable and tax free bonds and secu....

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.....Year 2013-14, 2014-15 and 2015-16 in its order passed in ITA No.528 and 2870/Ahd/2017 and ITA No.1788/Ahd/2018 dated 17.8.2021. Copy of the order was placed before us. Noting the above facts, we do not find any merit in the addition confirmed by the ld.CIT(A) pertaining to the disallowance of expenses under section 14A of the Act amounting to Rs. 54,16,974/-. 12. Having said so, we find that in Asst.Year 2010-11, the ITAT held that considering the nature of investment made by the assessee in bonds and securities, the disallowance made on administrative expenses by invoking Rule 8D was not proper. The disallowance made in the said year on the said account amounted to Rs. 20,57,946/-, being 0.5% of the average investment co....

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....w Rs. 13 lakhs under section 14A rwr 8D after taking into account of the suo-motto disallowance made by the assessee. In the result the Ground Nos. 1 to 4 raised by the assessee are partly allowed. 7. Regarding Ground No. 5, namely, late payment of PF & ESI contribution. Though, the assessee failed to make the payment within the due date as per the PF & ESI Act, however, paid the employees' contributions well before filing the return of income. Therefore, no disallowance to be made u/s. 36(1)(va) of the Act. 7.1. We have considered the rival submissions. The issue regarding allowability of employees' contribution to PF/ESI deposited after the due date prescribed under the respective Acts is now settled by the Hon'ble Supreme Court in ....