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2014 (1) TMI 841 - AT - Income TaxDisallowance of Interest under Explanation-8 of Section 43(1) of the Act - Purchase of brand name and trade marks Held that:- In the order of CIT it is not clear as to whether interest had been paid till the date of acquisition of the asset or thereafter - Both the parties agreed that the issue may be restored to file of AO for fresh decision after necessary examination order of the CIT(A) Set aside and the matter remitted back to the AO for fresh consideration Decided in favour of Assessee. Book adjustments u/s 115JB - Addition of provision created for advertisement and sales promotion and distribution expenses Held that:- Under the provisions of Explanation (c) of section 115JB(2), provision for meeting any liability, other than ascertained liabilities is required to be added to the book profit - The reason behind such provision is that while computing total income, only expenditure incurred towards ascertained liability whether by way of provision or otherwise is allowable as deduction thus provision has been made in section 115JB to add back any amount of provision created for liabilities other than ascertained liabilities - the assessee itself found the ascertained liability for the year at Rs.5.25 crores and added back the balance amount of Rs.7.19 crores, in the same year it clearly shows that the provision to that extent was not towards ascertained liabilities - The CIT therefore was correct in directing the Assessing Officer to add Rs.7.19 crores to the book profit under the provisions of Explanation (c) of section 115JB(2) Decided against Assessee.
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