TMI Blog2018 (2) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee was able to recover the remaining amount from its employee which stands verifiable from the audited profit & loss account for assessment year 2010-11 where the recovery of loss previously written off at ₹ 6,25,840/- is credited and offered to tax. The assessee has rightly claimed the business loss of ₹ 6,25,840/- and both the lower authorities erred in disallowing the same. We, therefore, delete the disallowance Disallowance of expenditure incurred towards payment of PF by the assessee - Held that:- It has been consistently held that such type of statutory payments on account of employer’s contribution are allowed as deduction if they are paid before the due date of filing the return of income as provided in sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her not generating income or generating exempted income. Such investment included interest free advances as well as investment in equity shares. The Assessing Officer took a view that the assessee has used the interest bearing borrowed funds for the purchase of making such investment which therefore, calls for disallowance u/s 14A and accordingly disallowance of ₹ 4,04,227/- and ₹ 3,63,999/- were made for assessment year 2006-07 and assessment year 2007-08 respectively. The impugned disallowances were confirmed by CIT(A). We further observe from perusal of the balance sheet of the assessee that interest free funds in the form of capital as on 31/03/2006 was ₹ 67,76,487/- and as on 31/03/2007 at ₹ 93,96,347/-. As a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thout the knowledge of the assessee which valued at ₹ 6,75,840/-. The assessee being C F agent, the principal company issued debit note to the assessee for ₹ 6,75,840/- towards shortage in cement. In turn the assessee raised debit note in the name of employee Sunil Kumar Verma. He made part payment of ₹ 50,000/- but did not pay the remaining amount of ₹ 6,25,840/-. Accordingly, the assessee debited the amount as loss in the profit loss account at ₹ 6,25,840/-. This loss was disallowed by the Assessing Officer which further found favour from CIT(A) also. From perusal of the records including the paper book filed by the assessee, we find that this fact is not disputed that the alleged amount is the business los ..... X X X X Extracts X X X X X X X X Extracts X X X X
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