Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (12) TMI 322 - ITAT INDOREDeduction of u/s 80IB - excluding interest received on loans and advances from the computation - Held that:- AS in agreement with the proposition that ginning and pressing is an activity of manufacturing. However, so far as earning of interest is concerned, there should be direct and proximate nexus with the business activity. Therefore, on the issue of interest, the issue is need to be remanded to the file of the AO as for claiming deduction u/s 80IB there must be “direct nexus” between the activity/business and is should be “derived from” the business activity of the assessee. Disallowance out of oil mill hammali, pressing expenses, ginning Ludai expenses and Kapas freight and hammali - Held that:- Disallowance of these expenses were done or the reason that these were not supported by verifiable documents and were based on self made vouchers & hammali charges were disallowed on the ground that there was steep increase approximately it was 4 times in such expenses in comparison to preceding year though there was increase of quantity of purchase by about 2½ times only and even the self made vouchers were not signed by the payees.
|