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TMI Blog2021 (9) TMI 600X X X X Extracts X X X X X X X X Extracts X X X X ..... re common, for the sake of convenience, these appeals were heard together and are being disposed off by this consolidated order. ITA No.1251/Chny/2019 (Assessee appeal):- 2. The first issue that came up for our consideration from ground No.A(i) to A(v) of the assessee appeal is disallowance of amount transferred to reserve fund u/s.45IC of the RBI Act, for Rs. 1,54,61,33,983/-. At the outset, the learned A.R for the assessee at the time of hearing submitted that this issue is covered against the assessee by an order of the Tribunal in assessee's group company case in M/s.Shriram Transport Finance Company Ltd. in ITA No.2572 & 2636/Chny/2017 dated 24.05.2018 for assessment year 2014-15, where an identical issue has been considered by the T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been held to be revenue in nature and deductible, then alternative plea of the assessee for claiming depreciation on said expenditure is infructuous and hence, not maintainable. The fact remains unchanged. The assessee failed to bring on record any valid reason to take a different view from the view taken by the learned CIT(A) and hence, we are inclined to uphold findings of the learned CIT(A) and reject ground taken by the assessee. 6. The next issue that came up for our consideration from ground No.III (A) (i& ii) of assessee appeal is recomputation of book profit u/s.115JB of the Income Tax Act, 1961, by making additions towards amount transferred to statutory reserve amounting to Rs. 1,04,40,00,000/-. The counsel for the assessee a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7,36,000/- under rule 8D(2)(iii) of Income Tax Rules, 1962 @ .5% of average value of investments. The learned A.R for the assessee submitted that this issue is covered in favour of the assessee by the decision of the Hon'ble Supreme Court in the case of CIT Vs.Chettinad Logistics Pvt.Ltd. 95 Taxmann 250, where it was held that section 14A cannot be invoked where no income was earned by the assessee for relevant assessment year . 10. The learned DR, on the other hand, fairly agreed to the proposition, but strongly supported order of the Assessing Officer. 11. Having heard both the sides and considered material on record, we find that issue of disallowance of expenses u/s.14A r.w.r 8D of the I.T.Rules, 1962, when Nil exempt income earne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the Tribunal held that royalty paid by the assessee for using logo is not a capital expenditure which gives enduring benefit to the assessee, because the assessee does not acquire any intangible asset, and further said logo is non-transferrable. 13. We have heard both the parties, perused material available on record and gone through orders of the authorities below. We find that the Tribunal has considered an identical issue in the case of M/s.Shriram Transport Finance Company Ltd. in ITA No.2572 & 2636/Chny/2017 dated 24.05.2018 for assessment year 2014-15, where it was held that payment made by the assessee for right to use logo is revenue in nature, which is deductible while computing income from business or profession. Further, simil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of financial year. 15. Having heard both the sides and considered material available on record, we find that the learned CIT(A) has recorded a categorical finding in light of various evidences including list of payment of commission to individual recipients by the assessee and held that a sum of Rs. 80,89,524/- is out of scope of section 194H of the Act, because payment in respect of each person does not exceed Rs. 5000/- and hence, the assessee does not require to deduct TDS, as per provisions of section 194H of the Act, and thus, disallowance u/s.40(a)(ia) of the Act for non-deduction of TDS cannot be made. The revenue has failed to bring on record any evidence to counter findings of fact recorded by the learned CIT(A), except stating th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l is recomputation of book profit u/s.115JB of the Act by making additions towards disallowance u/s.14A r.w.r 8D of the Income Tax Rules, 1962 . We find that this issue is squarely covered in favour of the assessee by the decision of ITAT., Delhi Special Bench in the case of ACIT Vs. M/s.Vireet Investments Pvt.Ltd. (165 ITD 27) (SB), where it was held that computation under clause (f) of Explanation (1) to section 115JB of the Act is to be made without resorting to computation as contemplated u/s.14A r.w.r 8D of Income Tax Rules, 1962. The co-ordinate Bench of ITAT., Chennai in the case of Shriram Transport Finance Company in ITA No.406 & 407/Mds/2017 had considered an identical issue and held that disallowances made u/s.14A by invoking Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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