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2005 (2) TMI 25 - HC - Income Tax"Whether, the Appellate Tribunal is right in law and on facts in deleting the addition to the extent of ₹ 5,47,69,105 being the alleged additional price towards purchase of milk, sanctioned on the last day of the accounting year, i.e., March 31, 1984?" - expenditure in question cannot be termed to be application of income in the absence of any evidence as to accrual of profits - payment of additional/final price made on the last day of the accounting year is allowable under section 28 of the Act, being a necessary deduction for ascertaining real profits on principles of commercial accounting – and payment in question is alternatively allowable under section 37 of the Act, having been incurred wholly and exclusively for the purpose of business carried on by the assessee - question referred for the opinion of the court is, therefore, answered in the affirmative, i.e., in favour of the assessee and against the Revenue
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