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2002 (11) TMI 74 - HC - Income TaxExpenditure – revenue or capital - loan amount was used for modernisation and expansion of the existing units -assessee had raised funds for modernisation and improvement of productivity of the existing business. - disallowance of commission, claimed to have been paid by the assessee to Ceramic Sales - assessee had claimed a sum of Rs. 62,09,542 as commission paid to Ceramic Sales, its sole selling agents for sale of refractories. The said agents were also responsible for realisation of the sale proceeds. He also noticed that the assessee had also claimed as revenue expenditure Rs. 78,22,545, paid by it as interest to various financial institutions. "A. Whether the Tribunal was correct in law in holding that the expenditure of Rs. 78.22 lakhs on account of interest paid to the financial institution is revenue in nature? - B. Whether the agreement between the assessee and Ceramic Sales is a genuine agreement? - C. Whether the Tribunal has erred in allowing deduction of Rs. 62,09,542 the commission paid to sole selling agents, Ceramic Sales, on sale of refractories? - D. Whether the order of the Tribunal is perverse both in law and on merits? - E. Whether the Tribunal has correctly interpreted the provisions of Explanation 8 of section 43(1) of the Income-tax Act?"
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