9911796707
TMI Blog2018 (9) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... (for short "the Act"). 3. Brief facts are, the assessee, a company, is engaged in the business of rendering cleaning and other allied services of Aviation Industry and also operates pre-paid taxi booth counters. For the assessment year under dispute, the assessee filed its return of income on 25th September 2012 declaring total income of Rs. 1,15,19,745. During the assessment proceedings, the Assessing Officer noticing that assessee has debited an amount of Rs. 2,10,800, towards interest charges paid to Tata Motors Finance Ltd. on vehicle loan, called upon the assessee to explain why such payment should not be disallowed on account of failure to deduct tax at source section 194A of the Act. Though, the assessee objected to the proposed di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut deduction of tax at source under section 194A of the Act. Therefore, reversing the order of the learned Commissioner (Appeals) on this issue, we sustain the addition made by the Assessing Officer. Ground raised is allowed. 6. In ground no.2, the Revenue has challenged deletion of disallowance of Rs. 52,547 under section 14A r/w rule 8D. 7. Brief facts are, during the assessment proceedings, the Assessing Officer noticing that in the relevant previous year the assessee has earned dividend income of Rs. 13,158, which according to the Assessing Officer was exempt from taxation, called upon the assessee to furnish a working of disallowance to be made under section 14A r/w rule 8D. In response, it was submitted by the assessee that no disal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of dividend income earned of Rs. 13,158, in the return of income filed by it. Assessee has pleaded that the aforesaid dividend income was earned by the assessee from shares in Co-operative Bank and Private Companies; therefore, such dividend income is not exempt. However, it appears, the aforesaid claim of the assessee was not properly examined either by the Assessing Officer or the Commissioner (Appeals). In case the dividend income earned by the assessee is taxable under the provisions of the Act, there is no question of making disallowance under section 14A of the Act. However, if the dividend income or any part of it is otherwise exempt under the Act, provisions of section 14A will apply subject to the conditions mentioned therein, irr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account of non-payment of Employees' Contribution to Provident Fund and Employees State Insurance Corporation. 13. Brief facts are, during the assessment proceedings the Assessing Officer on verification of the tax audit report found that Employees' Contribution to Provident Fund and Employees State Insurance Corporation were not paid before the due date as prescribed under section 36(1)(va) of the Act. Accordingly, he disallowed Employees' Contribution to Provident Fund amounting to Rs. 55,87,269 and employees contribution to Employees State Insurance Corporation amounting to Rs. 60,87,532 aggregating to Rs. 1,16,74,801. Assessee challenged the disallowance before the first appellate authority. 14. The learned Commissioner (Appeals), on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decisions of the Hon'ble jurisdictional High Court in case of CIT v/s Hindustan Organics Ltd., 366 ITR 001 and CIT v/s Ghatge Patil Transport Ltd., 368 ITR 749, clearly apply to the facts of the assessee's case. As regards disallowance of employer's contribution to ESIC, undisputedly, such payment is covered by the proviso to section 43B of the Act. The learned Departmental Representative has not controverted the factual finding of the learned Commissioner (Appeals) that the aforesaid payments were made by the assessee before the due date of filing of return of income for the relevant assessment year. In view of the aforesaid, we do not find any infirmity in the decision of the learned Commissioner (Appeals) on the issue. Accordingly, g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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