9911796707
TMI Blog2012 (8) TMI 303X X X X Extracts X X X X X X X X Extracts X X X X ..... ould be made by invoking of Sec. 194C r.w.sec. 40a(ia) as pleaded by AO - in favour of assessee. Disallowance towards foreign travel expenses - Held that:- As for assessment year 2002-03 , the CIT(A) has allowed entire travelling expenditure for trips to Dubai and 50% of such expenditure for trips to other places considering the submission that assessee is also engaged in the business of financial activities including leasing financial and advisory services and that the Directors had visited Dubai to study real estate market - as the issue in the year under question is same the same order is to be followed - in favour of assessee. Disallowance of expenses u/s. 14A r.w.r. 8D - Held that:- As the available funds with the assessee are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings, the Assessing Officer noticed that the assessee has debited ₹ 3,55,579/- as stock exchange expenses which are on account of short delivery charges failure to raise requisite margin money, non timely deposit of margin money. The AO sought explanation from the assessee show causing why this amount should not be disallowed being penalty nature in the light of the explanation to Sec. 37(1) of the Act. The assessee explained that such penalties are levied towards certain delays /technical non-compliances etc. and are therefore not hit by the explanation to Sec. 37(1) of the Act. This submissions of the assessee did not find favour to the AO who was of the opinion that the penalty imposed by Stock Exchange is in the nature of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is concerned the finding of fact recorded by the CIT(A) and upheld by the ITAT is that the payments made by the assessee to the Stock Exchange for violation of their regulation are not on account of an offence or which is prohibited by law and the invocation of explanation to Sec. 37 of the I.T. Act 1961 is not justified and accordingly declined to entertain the second question. Respectfully following the decision of the Hon ble Bombay High Court in the case cited above, we do not find any infirmity in the finding of Ld. CIT(A) and accordingly the finding of CIT(A) is confirmed. 10. The alternative reason given by the AO for disallowance to the sum of ₹ 3,55,579/- is that assessee has not deducted tax u/s. 194C of the Act, theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trips to other places. The Ld. CIT(A) followed the decision in assessee s own case for assessment year 2007-08 and allowed the entire expenses on Dubai and 50% expenses on visit to other places. 14. The Ld. Departmental Representative relied upon the findings of AO. The Ld. Counsel for the assessee pointed out that on similar facts and circumstances in the assessment year 2002-03 wherein the matter travelled up to the Tribunal in assessee s own case and the ITAT had deleted the additions made by the AO on account of disallowance of foreign travel. Respectfully following the decision of the Tribunal in ITA No. 3338/M/06 in assessee s own case, the ground raised by the Revenue is dismissed. 15. Ground No. 3 relates to the deletion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R argued that the assessee has not incurred any expense for earning exempted income. It was further pointed out by the AR that assessee has substantially own fund to the tune of ₹ 16,33,69,473/- and borrowed funds are only to the extent of ₹ 22,13,822/-. The Ld. Counsel relied upon the decision of the Hon ble Bombay High Court in the case of CIT Vs Reliance Utilities Power Ltd. 313 ITR 340. 19. We have considered the rival submissions and perused the orders of lower authorities and also the judgement relied upon by the Ld. Counsel. We find that the Hon ble Jurisdictional High Court in the case of CIT Vs Reliance Utilities Power Ltd. (supra) dismissing the appeal had thus held that if there were funds available both int ..... X X X X Extracts X X X X X X X X Extracts X X X X
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