Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2010 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (9) TMI 751 - AT - Income TaxStay Application - Scrutiny - Disallowance - whether the remission of liability i.e., ₹ 2 crores written off by TATA SSL on the supplies of plant and machinery, under dispute is falls into the category of income within in the purview of section 41 [1] of the Act or not - The purpose of having Section 41(2) as a provision in addition to Section 41(1) is implied that the depreciation is neither a loss, nor expenditure, nor a trading liability, referred to in Section 41(1) of the Act - assessee company had obtained the benefit of depreciation in the earlier years even on this amount of ₹ 2 crores - After reducing the said amount of depreciation granted earlier from the amount of ₹ 2 crores, balance amount is to be reduced from the closing written down value of the block of assets - it is well within the powers of this Tribunal to consider any disallowance/addition that may be warranted under any other provision of the Income-tax Act, while giving relief to the assessee in the context of addition made under S.41 of the Act Regarding addition of ₹ 28,12,500 - The only contention of the learned counsel for the assessee is that prior to the amendment, the sum received on key man insurance policy was exempt under section 10(10D) of the Act - Hence, the explanation inserted by the Finance (No.2) Act, 1996 with effect from 1-10-1996 to provide that any sum received under key man insurance policy shall not be exempt from tax, is only clarificatory in nature - Appeal is disposed of
|