HYDROCABON RESOURCE DEVELOPMENT COMPANY P LTD,MUMBAI vs. DCIT 8(2), MUMBAI

The Assessee in its appeal challenged the order of the Ld.CIT(Appeals) in sustaining the disallowance of commission payable to directors u/s 40(a)(ia) and disallowance u/s 14A of the Act.

Inspite of issue of notices to the Assessee, none appeared on behalf of the Assessee nor any adjournment petition is moved. Thus we dispose off the appeal by hearing the Ld. DR.

The Ld. DR submitted before us that the Assessing Officer disallowed commission to directors of Rs.16,57,988/- for the reason that the Assessee though deducted TDS on such commission it was remitted to the Government account belatedly and beyond the due date for filing of return u/s 139(1) of the Act. The Ld. DR submits that the Ld. CIT (Appeals) sustained disallowance made by the Assessing Officer agreeing with the view of Assessing Officer that since the Assessee did not deposit the TDS within the due date for filing of return u/s 139(1) of the Act. Hence, the said amount needs to be disallowed.

On perusal of the orders of the authorities below, we find no infirmity in disallowing the said commission. The findings of the authorities below are not controverted by Assessee. Regarding disallowance u/s 14A, the Ld. DR submits that the Assessing Officer while completing the assessment noticed that Assessee earned share of profit from Sanganpur JV Project and claimed as exemption u/s 10 of the Act and no expenses attributable for earning exempt income were disallowed by the Assessee and therefore the Assessing Officer invoking Rule 8D r.w.s 14A made disallowance. The Ld. DR submits that the Ld. CIT (Appeals) sustained the disallowance. The findings of the lower authorities have not been controverted by the Assessee and therefore we sustain the orders of the authorities below.

In the result, appeal of the Assessee is dismissed.