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2013 (1) TMI 782 - AT - Income TaxDisallowance of provision for post retirement medical as unascertained liability - Held that:- Contingent liabilities can be taken into account as trading expenses if they are sufficiently certain to be capable of valuation - Due to the change in the Accounting Standard in respect of the accounting of post retirement benefits, the assessee got done the actuarial valuation - . A liability which has already accrued though discharged on a future date would be entitled for deduction - Decided in favor of assessee Can interest paid in respect of capital borrowed allowed for deduction u/s 36(1)(iii) - Held that:- any amount of the interest paid towards or in respect of capital borrowed for acquisition of an asset or for expansion of the existing business regardless of its capitalization in the books or otherwise would not qualify as deduction - there is no finding regarding the source of the margin money whether it was from the borrowed fund borrowed for the purpose of expansion or from the other borrowings for which the assessee has claimed the interest paid as the revenue expenditure - the issue to the file of the AO - Remanded back for statistical purposes
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