9911796707
TMI Blog2023 (10) TMI 443X X X X Extracts X X X X X X X X Extracts X X X X ..... has accepted the expenditure at the rate of 10.3% of the deposits mobilized to be reasonable expenditure. In the assessment year 1995-96 [ 2013 (10) TMI 697 - ITAT DELHI ] the Tribunal has allowed reimbursement expenses, which worked out to 13.06% of the deposits mobilized during the year. Thus, in view of the aforesaid factual position, we hold that learned Commissioner (Appeals) was justified in deleting the disallowance. This ground is dismissed. Disallowance of write back of provision of dividend income - HELD THAT:- We find, though, the assessee created the provision for dividend in assessment year 1995-96 and offered it as income, however, actually it did not receive any dividend. Therefore, the provision was reversed in assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enting reimbursement of expenses to agent. 4. Briefly the facts relating to this issue are, the assessee had claimed the aforesaid deduction on account of expenditure reimbursed to its agent, Sahara India Corporation. While completing the original assessment under section 143(3) of the Income-tax Act, 1961 (in short the Act ) vide order dated 23.04.1999, the Assessing Officer restricted the deduction on the expenditure claimed by the assessee to Rs. 25,65,76,128/-, being 3% of the total deposit of Rs. 855 crores mobilized during the year and disallowed the balance amount of Rs. 81,50,93,579/-. Contesting the aforesaid disallowance, assessee preferred an appeal before learned Commissioner (Appeals). While deciding the appeal, learned fir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the materials on record, it is observed that while setting aside the order of learned Commissioner (Appeals) deleting the disallowance made by the Assessing Officer, the Tribunal has specifically disapproved estimation of deduction at 3% and had further directed the Assessing Officer to verify the factual position relating to such payment in case of Sahara India Firm for the assessment year 1996-97. However, without implementing the direction of the Tribunal in letter and spirit, the Assessing Officer has again repeated the addition. 6. From the materials placed before us, it is observed that in the assessment order passed in case of the Agent, viz., Sahara India firm, the payment has been accepted without any adverse finding. It is furt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the pendency of Revenue s appeal before the Tribunal, the Assessing Officer while implementing the direction of learned first appellate authority passed a fresh assessment order on 26.02.2002 repeating the disallowance as was made in the original assessment order. Contesting the disallowance, the assessee again preferred an appeal before learned Commissioner (Appeals). Vide order dated 10.05.2022, learned Commissioner (Appeals) deleted the disallowance on the reasoning that the addition made under section 68 of the Act has been deleted by him. Revenue s appeal against such order of learned Commissioner (Appeals) was dismissed by the Tribunal vide order dated 22.07.2005 in ITA No.709/Luc/2002. In the meanwhile, Revenue s appeal challenging ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 994-95 due to be received in financial year 1995-96. Since the amount was already offered as income in assessment year 1995-96, the Assessing Officer reversed the provision in assessment year 1996-97 and claimed it as deduction, as, actually no dividend on Canpep -92 was received. While completing the original assessment, the Assessing Officer did not allow the deduction claimed. Though, the assessee contested the aforesaid decision of the Assessing Officer before learned Commissioner (Appeals), however, disallowance was upheld. 13. Against the said decision of the first appellate authority, the assessee went in appeal before the Tribunal. While deciding the appeal vide order dated 20.05.2003, the Tribunal restored the issue to the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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