9911796707
TMI Blog2014 (1) TMI 1314X X X X Extracts X X X X X X X X Extracts X X X X ..... s were made for advertisement, consultancy and audit fees, then, tax has to be deducted – thus, the CIT(A) has rightly confirmed the disallowance u/s 40(a)(ia) made by the assessing officer – Decided against Assessee. Addition under capital gain – No transfer of property made u/s 2(47) of the Act - Held that:- For the purpose of levy of capital gain tax there shall be a transfer of capital asset within the meaning of section 2(47) of the Act - the assessee claims that this deletion was due to revaluation of the capital asset and not because of any transfer - The assessing officer has not examined the issue in the light of definition given in section 2(47) of the Act – order of the CIT(A) set aside ad the matter remitted back to the AO fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t : Smt. S. Vijayaprabha ORDER Per N. R. S. Ganesan (JM) The assessee filed the appeals against the order of CIT(A), Trivandrum dated 21-01-2013 against the assessment for assessment year 2008-09 and penalty levied u/s 271(1)(c) of the Act. 2. Let us first take ITA No.76/Coch/2013. Shri T.M. Sreedharan, the ld.senior counsel submitted that the first issue arises for consideration is disallowance of Rs.11,00,240 with regard to payment of commission / brokerage. The ld.senior counsel submitted that during the course of its business, the assessee paid brokerage to those people, who brought customers. According to the ld.senior counsel, this payment is in the nature of sales promotion expenditure. According to the ld.senior counsel, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to addition of Rs.9,51,163. Shri T.M. Sreedharan, the ld.senior counsel submitted that the assessee claimed expenditure of Rs. 9,51,163 towards advertisement, consultancy and audit fees. According to the ld.senior counsel, the assessee is not supposed to deduct tax in respect of these payments. We heard Smt. S Vijayaprabha, the ld./DR also. 6. It is not in dispute that the payments were made towards advertisement, consultancy and audit fees. When the payments were made for advertisement, consultancy and audit fees, this Tribunal is of the considered opinion that tax has to be deducted. Therefore, we hold that the CIT(A) has rightly confirmed the disallowance u/s 40(a)(ia) made by the assessing officer. Hence, we do not find any infirmit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n in section 2(47) of the Act. Therefore, this Tribunal is of the considered opinion that the assessing officer shall reconsider the issue in the light of definition given in section 2(47) of the Income-tax Act. Accordingly, the orders of the lower authorities are set aside and the issue is remitted back to the file of the assessing officer. The assessing officer shall reconsider the issue in the light of provisions of section 2(47) and thereafter decide the issue afresh in accordance with law after giving opportunity of hearing to the assessee. 10. The next ground of appeal is with regard to disallowance of interest. According to the ld.senior counsel, in the audit report filed u/s 44AB of the Act in form 3CB, the Chartered Accountant ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessing officer to verify the payment from the respective banks. The assessing officer being a quasi judicial authority is expected to call for respective details and the payment from the respective bankers and thereafter decide the matter. This Tribunal is of the considered opinion that the penal interest paid for the delayed payment is compensatory in nature for use and enjoyment of the money belonging to the bank, therefore, it is not for infraction of law. At the best, we may say that this payment of interest is for breach of contractual agreement with regard to the time schedule for repayment of the loan. Therefore, when the assessee claims that the money was paid to the bank, there is no question of any disallowance as if i ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
