9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (7) TMI 810 - AT - Income TaxAdhoc disallowance of consumption of raw material and personnel cost - Held that - This issue has been adjudicated in assessee s own case for the AY. 2009-10. Thus respectfully following the decision of the Co-ordinate Bench in the aforesaid case, we set aside the order of CIT(A) to this extent and allow the expenditure incurred on the same. There is no reason to disallow 5% of expenditure on adhoc basis. Brought forward losses of earlier years set-off during the current year while assessing the incomes at a positive figure - Held that - The action of the AO cannot be appreciated. However, as seen from the orders of ITAT pertaining to earlier years, there are various issues which were sent back to the AO for examination and re-determination. Consequent to those orders, if there are any brought forward losses and (or) un-absorbed depreciation, assessee is entitled to claim set-off and carry forward of the same as the case may be in this year. AO is directed to re-determine the amount and allow the necessary benefit as per the provisions of law. This ground is considered allowed for statistical purposes. Disallowance u/s. 40(a)(ia) - Non remitting of TDS - Held that - Since the TDS was remitted during the impugned assessment year, assessee is entitled to claim the deduction of the same amount.
Issues:
1. Disallowance of depreciation and expenditure by AO under section 144 of the Income Tax Act. 2. Failure of the assessee to provide necessary documents during assessment proceedings. 3. Additional evidence submitted by the assessee before CIT(A). 4. Appeal filed by the assessee before ITAT challenging CIT(A)'s order. 5. Disallowance of expenditure on raw material and personnel cost. 6. Brought forward losses and unabsorbed depreciation treatment. 7. Disallowance under section 40(a)(ia) of the Act. Issue 1: Disallowance of Depreciation and Expenditure: The AO disallowed depreciation on fixed assets and made additions for various expenditures under section 144 of the Income Tax Act. The CIT(A) confirmed these additions due to the assessee's failure to provide supporting evidence despite multiple opportunities during assessment proceedings. The ITAT remitted the issue back to the AO for fresh examination based on additional evidence submitted by the assessee. Issue 2: Failure to Provide Necessary Documents: The AO issued notices to the assessee during assessment proceedings, requesting information and documents, which the assessee failed to provide. Consequently, the assessment was completed based on available information, leading to disallowances and additions. Issue 3: Additional Evidence Submitted Before CIT(A): The assessee submitted additional evidence under Rule 46A before the CIT(A), which was sent to the AO for examination. The AO's remand report highlighted the lack of responses from the assessee, leading to the CIT(A) confirming the additions made by the AO. Issue 4: Appeal Before ITAT: The assessee filed a second appeal before the ITAT challenging the CIT(A)'s order. Grounds of appeal included objections to the disallowances and additions made by the AO, emphasizing the need for proper examination and consideration of evidence. Issue 5: Disallowance of Expenditure on Raw Material and Personnel Cost: The ITAT considered the adhoc disallowance of consumption of raw material and personnel cost, remitting the issue back to the AO for re-examination based on previous decisions in the assessee's own case for the AY 2009-10. Issue 6: Brought Forward Losses and Unabsorbed Depreciation Treatment: The ITAT directed the AO to re-determine brought forward losses and unabsorbed depreciation, allowing the necessary benefits as per the provisions of law. The treatment of losses from earlier years was considered for set-off and carry forward. Issue 7: Disallowance under Section 40(a)(ia) of the Act: The ITAT allowed the claim for disallowed expenditure under section 40(a)(ia) as the TDS was remitted during the impugned assessment year, based on previous decisions in the assessee's case for AY 2009-10. Overall, the ITAT allowed the appeal of the assessee for statistical purposes, remitting various issues back to the AO for re-examination and consideration based on additional evidence and legal provisions.
|
