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2011 (3) TMI 151 - CALCUTTA HIGH COURTDisallowance of Gift - Depreciation - Deduction u/s 80HHD - Held that: - the assessee having spent the sum of Rs. 1,54,875 for the purpose of purchasing gifts which have been given to its, customers as a part of offering hospitality on ceremonial occasions, the same must be held to be business expenditure as the same is neither in the nature of private expenses nor is a capital expenditure and at the same time, such expenses does not come any of the exceptions provided in section 37 of the Act - Accordingly decided in the favour of the assessee Regarding depreciation on new aircraft purchased by the assessee to the extent of 50 per cent - it has been established that the said aircraft was purchased for the business in the latter half of the assessment year and thus, the assessee became the owner and it was actually delivered to the assessee and landed at the New Delhi Airport Authority and the same was also made ready for use by insuring the same by the concerned insurance company - In such a case, the authority below rightly granted depreciation at the rate of 50 per cent for the part use of the said aircraft in accordance with law - Decided in favor of the assessee Deduction u/s 80HHD - total turnover versus gross receipt - for computation of the relief under section 80HHD, the total turnover alone is inconsequential but the Assessing Officer has relied upon it - Held that: for computation of the relief under section 80HHD, the total turnover alone is inconsequential - for computation of gross total receipt in business, the opening Sundry Debtor should be added to the total turnover and from that the closing Sundry Debtor should be deducted in order to arrive at the correct figure - AO wrongly considered the total turnover of Rs. 395,62,34,559 instead of gross receipt in business amounting to Rs. 390,93,27,318 certified by the Auditor and accordingly, the relief allowed under section 80HHD should be enhanced to Rs. 77,62,17,303 instead of Rs. 77,53,58,47 - Decided in the favour of the assessee
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