9911796707
TMI Blog2022 (3) TMI 206X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee on the ground that no supporting document/evidence has been brought on record by the assessee - HELD THAT:- Following the decision rendered in case of Oriental Insurance Co. Ltd. vs. CIT [ 2008 (10) TMI 230 - KARNATAKA HIGH COURT ] wherein it is held that, similar deduction towards payment of interest on delayed payment of TDS was allowed . Since this payment made by the assessee cannot be treated as a tax but compensatory in nature, hence allowable expenses u/s 37 of the Act. So, finding no infirmity or perversity in the impugned findings, ground no.3 is determined against the Revenue. Disallowance @ 10% of the total expenses on ad hoc basis towards repair and maintenance expenses - HELD THAT:- Since AO has not dispute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T(A) is legally justified in holding a principal that quantum of expenditure cannot be exceed the income of the assessee? 3. Whether on facts and in circumstances of the case, the Ld. CIT(A) is legally justified in deleting the disallowance of ₹ 98,430/- u/s 37(1) of the Act on account of interest on delayed payment of TDS on the basis of the AIR information by holding that interest paid on default occurred by the assessee in payment of Govt. Dues was a revenue expenses and by ignoring the explanation-1 to section 37(1) of the Act? 4. Whether on facts and in circumstances of the case, the Ld. CIT(A) is legally justified in deleting the disallowance of ₹ 3,41,848/- u/s 37(1) of the Act on the account of repair and ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3,08,77,136 B = Average value of investments Investment as on 01.04.2011 12,86,32,549 Investment as on 31.03.2012 33,90,46,382 46,76,78,931 Average value of investments (467678931/2) 23,38,39,465 C = Average of Total As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... One half % of average value of investment(233839465X0.5%) 11,69,197 Subject to Maximum of exp. TOTAL DISALLOWANCE AS PER RULE 8D 1,85,95,109 3. AO also made disallowance of ₹ 98,430/- u/s 37(1) of the Act on account of interest on account of delayed payment of Tax Deducted at Source (TDS) on the basis of AIR information. AO also made disallowance of ₹ 3,41,848/- u/s 37(1) of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... restricted to ₹ 9,45,651/- i.e. upto extent of exempt income. Relief of ₹ 1,76,49,458/- is allowed to the appellant (1,85,95,109 -9,45,651). 8. By now, it is settled principle of law that disallowance u/s 14A read with Rule 8D cannot be more than the dividend income earned and in this view of the matter, we find no illegality or infirmity in the findings returned by ld. CIT (A), hence grounds no.1 2 are determined against the Revenue. GROUND NO.3 9. AO after noticing from the AIR report showing total TAN defaults of ₹ 98,430/- as late payment interest made disallowance of the same amount i.e. ₹ 98,430/- by adding the same back to the total income of the assessee on the ground that no supporting docum ..... X X X X Extracts X X X X X X X X Extracts X X X X
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