Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (1) TMI 475 - ITAT MUMBAIAddition of compensation payable for unauthorised slum dwellers - contingent liability or as an unascertained liability - HELD THAT:- We find that in respect of compensation payable for unauthorised slum dwellers for 115 persons and compensation payable to authorised slum dwellers in respect of 261 persons were correctly provided by the assessee and based on consent terms of the Civil Court and agreement entered into with Vikasak and Sanstha Society. These provisions could not be categorised as contingent liability or as an unascertained liability. It is also a fact that assessee had been continuing to make payments by discharging the liabilities as could be seen in the aforesaid table in subsequent years. Hence, we hold that Apatra Expenses and compensation payable to various slum dwellers are genuine liabilities not warranting any disallowance thereon. TDS u/s 194I on rent expenses - As relying on M/S. SAHANA DWELLERS PVT. LTD. VERSUS INCOME TAX OFFICER WARD–8 (3) (1) , MUMBAI [2016 (3) TMI 591 - ITAT MUMBAI] we hold that tax is not required to be deducted on the rent component and hence, no disallowance u/s.40 (a)(ia) of the Act could be made thereon. Cost of materials consumed and cost of construction - Going by the conduct of the assessee, we find that assessee though had not received the sum of ₹ 45 Crores in full even upto 31/03/2016, but the assessee had volunteered to offer the said sum of ₹ 45 Crores in the year under consideration and had claimed the expenses that are to be incurred for the smooth execution of the project in consonance with the matching principle of income and expenditure thereon, and also considering the fact that the very same modus operandi adopted by the assessee in subsequent years i.e. in A.Y₹ 2013-14 and 2014-15 were accepted by the ld. AO in scrutiny assessment proceedings without making any additions thereon or rejecting the books of accounts of the assessee, we are not inclined to accept to the arguments of the ld. DR that atleast 5% of expenses offered by the assessee during the course of assessment proceedings need to be taxed. The ld. CIT(A) had already pointed out that the said offer was made only to buy peace and avoid protracted litigation. We also find that the alleged defects pointed out by the ld. AO had been duly addressed by the assessee and in these peculiar facts and circumstances of the case, we are not inclined to direct the ld. AO to add 5% of expenses offered by the assessee during the course of assessment proceedings. Hence, we do not find any infirmity in the order of the ld. CIT(A) granting relief to the assessee. Accordingly, the grounds raised by the Revenue are dismissed. Disallowance of loss of A.Y.2012-13 on the pretext that no loss was available in A.Y.2012-13 in view of additions made - consequential set off in subsequent years. During this year, there was a change in shareholding beyond 51% of voting power which was stated to be in violation of provision of Section 79 of the Act. Hence, in the opinion of the Revenue, the assessee is not entitled for set off of losses. But we find that the shares were only transferred from Karta to its Coparceners and hence, there was no change in shareholding at all. But from the perusal of the assessment order, we find that there is no finding recorded by the ld. AO in this regard. Hence, we are inclined to dismiss the ground No.3 raised by the assessee as not emanating from the order of the ld. AO. However, we hold that assessee would be entitled for set off of loss of A.Y.2012-13 with the profits, if any, of A.Y.2014-15.
|