9911796707
Advanced Search 
TMI Blog2022 (1) TMI 242X X X X Extracts X X X X X X X X Extracts X X X X ..... for the sake of convenience, these appeals were heard together and are being disposed off, by this consolidated order. 2. The assessee has more or less filed common grounds of appeal for both assessment years, therefore, for the sake of brevity, grounds of appeal filed for the assessment year 2014- 15 are reproduced as under:- "1. For that the order of the Commissioner of Income Tax (Appeals) is contrary to law, facts and circumstances of the case to the extent prejudicial to the interests of the appellant and is opposed to the principles of equity, natural justice and fair play. 2. For that the Commissioner of Income Tax (Appeals) failed to appreciate that the order of without jurisdiction. 3. For that the Commissioner of Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... incurred by the appellant for earning exempt income. 13. For that the Commissioner of Income Tax (Appeals) failed to appreciate that the Assessing Officer erred in invoking Rule 8D(2)(ii) in computing the disallowance u/s.14A. 14. For that without prejudice to the above, all investments did not yield any return in the form of dividend during the impugned assessment year and hence applying Rule 8D(2)(ii) and Rule 8D(2)(iii) on entire investments is not warranted in the facts and circumstances of the case." 3. We find that appeal filed by assessee for assessment year 2014-15 is barred by limitation for which necessary petition for condonation of delay explaining the reasons for the delay has been filed. As per petition filed by the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder dated 28.11.2018 sustained additions made by the Assessing Officer towards disallowance of employees contribution to PF & ESI u/s.36(1(va) r.w.s. 2(24)(x) of the Act. The learned CIT(A) had also sustained additions towards expenditure relatable to exempt income u/s.14A read with Rule 8D of the Income Tax Rules, 1962. Aggrieved by order of the learned CIT(A), the assessee is in appeal before us. 6. None appeared for the assessee. We have heard learned DR and perused materials available on record. The first issue that came up for our consideration from ground no. 3 to 5 of assessee appeal is additions made towards disallowance of employees contribution to PF & ESI u/s. 36(1(va) r.w.s. 2(24)(x) of the Act. The learned DR, at the time of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respective Act, but before due date for filing of return of income u/s.139(1) of the Act is allowable deduction. The relevant findings of the Tribunal in ITA No.402 & 403/Chny/2021 dated 08.12.2021 are as under:- "6.8 In the present case also, before insertion of Explanation 2 to Section 36(1)(va) of the Act, there is ambiguity regarding due date of payment of employees' contribution on account of provident fund and ESI, whether the due date is as per the respective acts or up to the due date of filing of return of income of the assessee. As noted by Hon'ble Supreme Court an amendment made to a taxing statute can be said to be intended to remove hardship only of the assessee and not of the Department. Imposing of a retrospective levy on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of M/s. Redington India Ltd. Vs. Addl.CIT (2017) 77 Taxmann.com 257 (Mad), where it was categorically held that in absence of exempt income, no disallowance could be made towards expenses relatable to said exempt income. 11. We find that the Hon'ble Jurisdictional High Court of Madras in the case of M/s. Redington India Ltd. Vs. Addl.CIT (supra) had considered identical issue and held that in absence of exempt income, no disallowance can be made towards expenses relatable to said exempt income. In this case, facts borne out from records clearly show that there is no exempt income for both assessment years, and hence, the Assessing Officer cannot compute disallowance of expenses relatable to said exempt income. Accordingly, we direc ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
