Dy. CIT v. Relish Pharmaceuticals Ltd.

INCOME TAX ACT, 1961

--Business deduction under section 36(1)(iii)--Interest on borrowed capital Allowability --Held: AO made disallowance of interest on loans and advances. The CIT(A) deleted the disallowance on the ground that AO had not established that the interest-bearing funds were advanced as interest-free funds. The order of the CIT(A) was non-speaking, hence, cryptic. Moreover, the finding that the assessee was having sufficient interest-free funds was also not correct. It was pointed out by the AO that the advance given to M/s. M.P. Builders was in connection with advance for capital goods. Similarly, other advances were there on which no break-up was given. Under these facts, the CIT(A) was not justified in deleting the disallowances.

Income Tax Act, 1961, Section 36(1)(iii)

REFERRED :

FAVOUR : Against the assessee

A.Y. : 2007-08

INCOME TAX ACT, 1961

--Assessment --Additions to income Addition based on AIR not reconciled --Held: AO made disallowance in the hands of assessee on account of transaction entered with JB on the ground that the transaction as mentioned had been reported by J.B. in the Annual Information Return (AIR) and so to that extent, there was discrepancy in the same in the account furnished by the assessee. The CIT(A) deleted the disallowance. The CIT(A) while deleting the addition observed that it was incumbent upon the assessee to reconcile the discrepancy, if any. However, the assessee had grossly failed to do so, therefore, the order of the CIT(A) was set aside and the finding of the AO was confirmed.

Income Tax Act, 1961 Section 143(3)

REFERRED :

FAVOUR : Against assessee

A.Y. : 2007-08

INCOME TAX ACT, 1961

--Business disallowance under section 43B --Employees' contribution to PF/ESINot deposited within time--Held: The CIT(A) confirmed the disallowance made on account of employees' contribution towards PF/ESI as the same was not deposited in the Government Account within the stipulated time. The issue in the instant appeal was similar to the issue arose in the case of CIT v. Gujarat State Road Transport Corporation (2014) 366 ITR 170 (Guj). Therefore, following the same, the order of CIT(A) was upheld.

Income Tax Act, 1961, Section 43B

Followed:CIT v. Gujarat State Road Transport Corporation (2014) 366 ITR 170 (Guj.)

REFERRED :

FAVOUR : Against the assessee

A.Y. : 2007-08

IN THE ITAT AHMEDABAD A BENCH

SUBSCRIBE FOR FULL CONTENT