Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2011 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (3) TMI 613 - AT - Income TaxDisallowance of lease rental, paid on windmill - Lease back transaction - The case of the authorities below is that there was no need for the assessee to sell these two windmills because in any case directly or indirectly these windmills were utilized for the purposes of the business of the assessee - CIT (A) has followed the decision of the ITAT in assessee's own case for the assessment years 1998-99 and 1999-200 on similar facts, wherein, the Tribunal has allowed the deduction of lease rental on this windmill - there is considerable force in the contention of the assessee that while on the one hand the assessee's claim of deduction of lease rentals has been disallowed, the income earned by the assessee on sale of power to Andhra Pradesh Government has been assessed without demur - Decided in favor of the assessee Regarding Computation of book profit for the purpose of MAT u/s 115JB - deduction u/s. 80 HHC - Assessing Officer asked the assessee to explain as to why the deduction u/s. 80HHC, as actually claimed in the return and not the profits said to be eligible for deduction under section 80 HHC, be reduced from the book profit u/s.115JB - In the case of Ajanta Pharma Ltd vs CIT (2010 -TMI - 77381 - SUPREME COURT) wherein it was held that In Section 115JB, as in Section 115JA, it has been clearly stated that the relief will be computed under Section 80HHC(3)/(3A), subject to the conditions under sub-clauses (4) and (4A) of that Section - Decided in favor of the assessee Regarding personal expenditure - Assessing Officer asked the assessee to furnish the details of miscellaneous expenses, which could not be complied with - The requisite details of travelling, such as names of persons travelling and purpose of travel etc are on record, and since complete details of expenses, other than ticket expenses, are not placed, an adhoc disallowance of 20% is made towards personal expenses - since there is no dispute about the fact of, evidence of or justification of expenses, the entire amount is allowed in full by the CIT(A) - Appeal is dismissed Regarding remission or cessation of any liability - the bank has not given a clear-cut reply, regarding the nature of remission of liability of Rs. 2,91,36,753 - in the case of CIT v. Chetan Chemical Pvt Ltd cited (2001 -TMI - 11255 - GUJARAT High Court ), wherein, the Hon'ble High Court held that remission of loan does not come under the purview of section 41(1) of the I.T.Act - Decided in favor of the assessee
|