catchwords: disallowance
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Whether To Appeal Against The Assessment Order Is Unfettered Right Of The Assessee?
Yes, the right of appeal has been specially conferred on the assessee by the statute and it is unfettered right which cannot be taken away by any understanding.
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Whether Tax Is Required To Be Deducted In Respect Of Interest Accrued But Not Due?
– From January 1 to March 31, 2010, “interest accrued but not due”, for which provision has been made in the accounts. However, it will be due only on June 30, 2010 and would be credited to payees account or suspense account or payable account
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Whether Amount Deposited With LIC Group Gratuity Fund Is Allowable U/s. 37?
S. 29 of the Act reads as under: “The income referred to in section 28 shall computed in accordance with the provisions contained in sections 30 to 43D”. S. 43B reads as under:
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Whether Employee’s Contribution, If Paid Before Due Date Of Filing ROI Is Disallowable?
Section 43B reads as under: “Notwithstanding anything contained in any other provision of this Act, a deduction otherwise allowable under the Act in respect of – (b) Any sum payable by the assessee as an employer by way of contribution
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Whether Tax Is Required To Be Deducted On The Amount Which Is Not Chargeable To Tax?
Yes, the Supreme Court has confirmed that the obligation to deduct tax at source arises only if “sum is chargeable under the provisions of the Act” but it is not clear from the query how any interest,
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Is Disallowance U/s. 40(a) Justified On The Amounts Provided At The End Of The Year?
The view of the assessee is not correct. In fact, the Special Bench in Merilyn Shipping & Transports v. ACIT [136 ITD 23 (Visakhapatnam) (SB)] has specifically held that the provisions of section 40(a) (ia) are applicable to the amounts of expenditure which are payable as on March 31 of every year. However, the said provisions could not be invoked to disallow expenditure which has been actually paid during previous year without deductions of tax.
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Can Disallowance Be Made U/s. 40(a)(a) For Non-Deduction Of Tax On Depreciation?
Section 40 starts with “notwithstanding anything to the contrary in sections 30 to 38, the following amounts shall not be deducted in computing the income chargeable under the head “Profits and gains of business or profession”: – (ia) any interest, commission or brokerage, [rent, royalty] fees for professional services or fees for technical services payable to a resident, or amounts payable to a contractor or sub-contractor,
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Whether Disallowance U/s. 40(a)(ia) Be Justified, If Payee Has Paid The Tax On That Income?
Yes. As per section 28 of the Income-tax Act 1961, the assessee should carry on the business during the year. Section 28 reads as under: “The following income shall be chargeable to income tax under the head” Profits and gains of business or profession” –
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Can Disallowance U/s. 40a(ia) Be Made, When Amount Was Paid In Advance And Adjusted At The Year End?
Section 40(a)(ia) reads as under: “any interest, commission or brokerage rent, royalty, fees for professional services or fees for technical services payable to a resident, or amounts payable to a contractor or sub contractor,
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Can Disallowance Be Made U/s. 40(a)(ia), When Tax Has Not Been Made At Proper Rate?
In DCIT vs. S. K. Tekriwal [48 SOT 515 (Kol)], the Tribunal held that the condition laid down under section 40(a)(ia) for making addition is that tax is deductible at source and such tax has not been deducted. If both the conditions are satisfied, then such payment can be disallowed under section 40(a)(ia). But where tax is deducted by the assessee,