9911796707
TMI Blog2020 (5) TMI 140X X X X Extracts X X X X X X X X Extracts X X X X ..... t and made necessary endorsement in the grounds of appeal. Accordingly, ground No.2 is dismissed as not pressed. The remaining grounds give rise to following two issues: a) Disallowance of advances written off. b) Addition made of on the basis of Annual Information Report (AIR). 2. The assessee is engaged in the business of distribution of electronic goods and is also acting as commission agent for its holding company. 3. The first issue relates to advances written off. The assessee claimed a sum of Rs. 86.65 lakhs as deduction under the head "Advances written off". The assessee explained to the AO that these advances represent the amount paid by the assessee to its employees in lieu of Employees Stock Option Plan (ESOP), which was fl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uisites in the hands of employees and tax was also deducted. However, the parent company did not reimburse the amount paid by the assessee to its employees (which was treated as advance) and hence the assessee has written off the same during the year under consideration. Accordingly, the Ld. A.R. submitted that the advances were written off in the normal course of business out of commercial expediency. Since the amount paid by the assessee to its employees has been taxed in the hands of its employees, the same should be allowed as deduction in the hands of the assessee. 5. We heard Ld. D.R. and perused the record. We notice that the assessee was directed to pay cash to the employees in lieu of ESOP entitlements by its parent company Tektro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce. Accordingly, we uphold the order passed by the Ld. CIT(A) on this issue. 7. The next issue relates to addition made by the A.O. on account of difference between the amount paid by the assessee towards credit card bills and that reported by American Express Bank in the AIR information. The assessee has given credit cards (American Express bank credit cards) to its employees for incurring expenses on behalf of the company. As per AIR information received by the A.O., the assessee has paid credit card bills to M/s. American Express Bank Corporation to the tune of Rs. 3.59 crores. Since the assessee could furnish details to the extent of Rs. 1.06 crores only, the A.O. added the difference of Rs. 2.52 crores in the hands of the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the relevant details and accordingly submitted that the addition may be sustained to the tune of Rs. 5.65 lakhs only. Accordingly, he submitted that the addition should be restricted to the difference amount of around Rs. 5.65 lakhs only. 9. We heard Ld D.R and perused the record. We notice that the American Express bank has given details of credit cards payments received by it as under:- Tektronix India P Ltd (AABCT1733D) - 1,18,87,570 Tektronix Engg. Development India Private Limited - 1,71,33,268 2,90,20,838 The Ld A.R submitted that both the above said companies have been merged and hence the combined total should be taken into account. The assessee has furnished the details of credit card payments made by it in pages 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
