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2010 (7) TMI 623 - AT - Income TaxDisallowance u/s 35D - In the year under consideration, the assessee claimed31.67 lakh as deduction under sec. 35D of the Act being 1/5th of 5% of public issue of 39,10,000 shares of Rs.5/- each at a premium of76 - High Court of Delhi in the case of Berger Paints India vs. CIT, 292 ITR 658 (Del.) – Held that the premium amount collected it is excluded for determining the amount of capital employed for calculating the amount of deduction u/s 35D(3) - In other words, this issue raised by the revenue is decided in favour of the revenue and against the assessee Ground No.2 is directed against the CIT(A)’s order in deleting the disallowance of2,95,616/- on account of foreign travelling expenses for the AY – 2005-06 - The assessee company was asked to give proof of the business purpose for which the foreign travelling was undertaken – AO disallowed 20% of the total expenses which was worked out to2,95,616 - The assessee has not given the details of expenses incurred out of foreign exchange amounting to2,72,500 – Held that the disallowance the amount of150000 – Appeal is partly allowed
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