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2013 (6) TMI 48 - BOMBAY HIGH COURTPayments to sister concerns - disallowance u/s 40A(2)(a) - ITAT deleted the addition - Held that:- As the payments made by the assessee to its sister concerns was reimbursement for the salaries of the employees who have been deputed by the sister concerns to work with the respondent assessee & it is not the case of the revenue that the assessee had made any payment for consideration extraneous to any allegation that the amounts paid to its sister concerns were over and the above the salaries due to the employees. Tribunal conclusion that the expenditure was incurred for salaries and thus no occasion to invoke Section 40(a)(ia) requires no entertainment. Disallowance of interest expenditure - interest free advances for non business purposes - the Tribunal upheld the finding of fact of the CIT(A) that no advances for non business purposes had been made by the assessee - Held that:- As applying the decision of CIT v. Reliance Utility & Powers Ltd. [2009 (1) TMI 4 - HIGH COURT BOMBAY] to hold that the respondent was in possession of its own interest free funds to the extent of Rs.72 lacs. it has to be presumed that interest free advances have been made out the same - no reason to entertain this question.
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