Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (8) TMI 637 - AT - Income TaxWhether the interest paid on sales tax under the amnesty scheme is an allowable deduction as business expenditure – Held that:- Interest paid on sales tax is not of penal in nature and is therefore allowable as business expenditure - interest paid on sales tax under the amnesty scheme is not for infringement of any law Allowance of sales tax in earlier years – Held that:- Nothing has been placed to prove that in earlier years the sales tax that remained unpaid was added to the income - aspect needs to be verified - issue remitted back to the file of A.O. for limited purpose to verify as to whether in the earlier years the unpaid amount of sales tax at the year-end was added to the income. If the same was added then the same should be allowed as deduction in the current assessment year u/s. 43B - claim of the assesse is accordingly allowed for statistical purposes Deemed dividend taxed u/s. 2(22)(a) – Held that:- Deemed dividend did not form the part of book profit computed as per Part-II addition III of Schedule VI to Companies Act, 1956 - addition for computing the book profits is uncalled for Provision for gratuity - book profit u/s. 115JA – Held that:- Provision for gratuity not as unascertained liability for the purpose of calculation of book profits u/s 115JB and therefore considering the same for computing the book profits is uncalled for – addition deleted Computation of book profit u/s. 115JB – alleged that assessee had not added provision for fixed assets held for disposal amounting to Rs.7,00,000/- for computing book profit u/s. 115JB – Held that:- There has been retrospective amendment to Sec. 115JB as a result of which provision for diminution in the value of assets needs to be added to arrive at the book profits - matter remanded to the file of the A.O. for limited purpose to verify as to whether the provision of Rs.7 lacs includes any provision made in the current assessment year. Addition is to be made of only the incremental amount of provision made during the year. Therefore, this ground is allowed for statistical purpose - appeal of the assessee is allowed
|