2009 (4) TMI 516 - HC - Income Tax

Whether expenditure for earning dividend income cannot be estimated therefore, cannot be disallowed while computing book profits and also under the normal provisions of the Income-tax Act - Held that:- certain administrative expenses are required to be incurred to keep track of receipt and accruals of dividend income and accordingly, it is not possible to accept that no expenditure has been incurred out of the dividend income, assessee has earned dividend income only from three companies. There is no fact of having incurred any expenditure for the purpose of earning the dividend income. The disallowance is misconceived and the same is deleted in the light of the same order

Whether Tribunal was right in allowing under section 43B of the Income-tax Act the unpaid customs duty and excise duty including in the closing stock – Whether, on the facts and in the circumstance of the case and in law, the hon'ble Tribunal was right in confirming the direction given by the Commissioner of Income-tax (Appeals) to the Assessing Officer to allow, for the purpose of computation of book profits under section 115JA of the Income-tax Act, the deduction under section 80HHC on the basis of profits and gains as computed under Chapter IV of the Income-tax Act and not on the basis of book profit under section 115JA ? - Whether, on the facts and in the circumstance of the case and in law, the hon'ble Tribunal was right in holding that pre-operative expenses and trial run expenses that have been capitalised in the books of account of the assessee-company is revenue expenditure ? - Appeal admitted on the issue of question of law.