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TMI Blog2016 (2) TMI 198X X X X Extracts X X X X X X X X Extracts X X X X ..... ide order dated 11.12.2008 and the total income was determined at Rs. Nil. Aggrieved by the order of A.O., Assessee carried the matter before ld. CIT(A) who vide order dated 15.02.2011 granted partial relief to the Assessee. Aggrieved by the aforesaid order of ld. CIT(A), Revenue is now in appeal before us and Assessee has also filed C.O. The grounds raised by the Revenue in ITA No.1144/Ahd/2011 reads as under:- 1. The Ld. CIT(A) has erred in law and on facts in deleting the disallowance of Directors' remuneration of Rs. 3,00,000/-. 2. The Ld. Commissioner of Income tax (A) has erred in law and on facts in directing the AO to verify the contentions of the assessee regarding disallowance of various expenses of Rs. 13,73,945/-, thus in effect setting-aside the issue to the file of AO , which is beyond the powers of CIT(A) u/s. 251. 3. The Ld. Commissioner of Income tax [A] has erred in law and on facts in directing the AO to verify the contentions of the assessee regarding addition of Rs. 5,34,612/- being increase in unsecured loans from shareholder and directors , thus in effect setting-aside the issue to the file of AO, which is beyond the powers of CIT(A) u/s 251. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ey filed returns of income in ward-5(3) for A.Y. 2006-07 admitting the remuneration received and paid the taxes thereon. Therefore it cannot be said that there is diversion of income with a view to avoid tax. It is further seen that in the order u/s. 143(3) dated 25-11-2009 for the immediately succeeding A.Y. 2007-08, no such disallowance was made. Therefore, I hold that the impugned disallowance is unwarranted. It is deleted. This ground of appeal is allowed. 7. Aggrieved by the order of ld. CIT(A), Revenue is now in appeal before us. 8. Before us, ld. D.R. pointed to the observations made by the A.O and supported his order. 9. We have heard the ld. D.R. and perused the material on record. The issue in the present case is about disallowance of Directors' remuneration. A.O had disallowed the expenses on comparing the expenses with that of earlier year. We further find that apart from the absolute increase in terms of expenses no material has been brought on record to demonstrate the excessiveness of remuneration. We also find that ld. CIT(A) while deleting the addition has noted that the two Directors' to whom the remuneration was paid have shown the remuneration received from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ected the A.O to verify the assessee's contention and delete the disallowance. It is thus seen that ld. CIT(A) while deciding the issue had directed the A.O to verify the contentions of the Assessee and thereafter delete the addition. At this moment it will be relevant to refer to relevant provisions of Section 251 which reads as under:- Powers of the Commissioner (Appeals) 251 (1) in disposing of an appeal, the Commissioner (Appeals) shall have the following powers(a) in an appeal against an order of assessment, he may confirm, reduce, enhance or annul the assessment. 14. The perusal of provisions of Section 251(1)(a) reveals that CIT(A) in an appeal against an order of assessment can confirm, reduce, enhance or annul the assessment. The power of setting aside which was available to CIT(A), is no more available to CIT(A) by virtue of amendment made by Finance Act 2001 with effect from 1.06.2001. Thus it can be seen that in the present case CIT(A) has set aside the issue to the file of A.O, the powers of which are not available to him at the relevant time. We therefore are of the view that the matter needs to be restored to the file of CIT(A) for considering the submissions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e by Finance Act 2001 with effect from 1.06.2001. Thus it can be seen that in the present case CIT(A) has set aside the issue to the file of A.O, the powers of which are not available to him at the relevant time. We therefore are of the view that the matter needs to be restored to the file of CIT(A) for considering the submissions of the Assessee and thereafter deciding the issue on the basis of facts and circumstances of the case and in accordance with law and after recording a clear finding on the issue. In the result, the ground of Revenue is allowed for statistical purposes. 20. In the result, the ground of appeal is allowed for statistical purposes. Ground no. 4 is with respect to deleting the disallowance of loss. 21. A.O noticed that Assessee had claimed loss of Rs. 44,98,864/- and the total disallowances as worked out by him comes to Rs. 26,68,137/-. He was of the view that since the Assessee has not proved the loss by furnishing the required information nor produced any books of accounts, the loss of Rs. 18,30,727/- (Rs.44,98,864 - 26,68,137/-) cannot be allowed. He accordingly disallowed the same. Aggrieved by the order of A.O., Assessee carried the matter before ld. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have no application. As seen from the assessment order and as admitted by the appellant, there is delay in making payment. Appellant's contentions are general and vague. Hence disallowance of the said sum is upheld. This ground of appeal is dismissed. 28. Aggrieved by the order of ld. CIT(A), Assessee is now in appeal before us. 29. Before us, ld. D.R. submitted that no interference to the order of ld. CIT(A) is called for in view of the decision of Hon'ble Gujarat High Court in the case of Gujarat State Road Transport Corporation reported in (2014) 366 ITR 170 (Guj.). He thus supported the order of ld. CIT(A). 30. We have heard the ld. D.R. and perused the material on record. The issue in the present case is about delayed deposit of employees contribution of PF. We find that Hon'ble Gujarat High Court in the case of GSRTC (supra) has held has under:- "any sum with respect to the employees contribution as mentioned in s. 36(l)(va), assessee shall be entitled to the deduction of such sum towards the employees contribution if the same is deposited in the accounts of the concerned employees and in the concerned fund such as Provident Fund, ESI Contribution fund, etc provided ..... X X X X Extracts X X X X X X X X Extracts X X X X
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