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2010 (10) TMI 705 - AT - Income TaxDisallowance - u/s 14A - Since the decision of the jurisdictional High Court in M/s Godrej Boyce and Mfg Co Ltd vs DCIT (2010 (8) TMI 77 - BOMBAY HIGH COURT) was not available either before the AO or before the CIT(A) therefore, we are of the considered opinion that the matter needs fresh adjudication at the level of the Assessing Officer in the light of the decision of the jurisdictional High Court cited above. The Assessing Officer shall give due opportunity of being heard to the assessee and decide the issue afresh in accordance with law - This ground of the assessee, accordingly allowed for statistical purpose. Deduction u/s 80HHC - In view of the decision of the Hon'ble Supreme Court in the case of K Ravindranath nair (2007 -TMI - 2378 - Supreme Court of India), do not find any infirmity in the order of the CIT(A) denying the benefit of deduction u/s 80HHC on I.T Refund, interest on tax free bonds and other interest income. The ground raised by the assessee is accordingly dismissed. Expenditure for canteen subsidy - provisions of section 40A(9) - do not find any infirmity in the order of the CIT(A), who has followed the decision of his predecessor from Assessment Year 1998-99 to 2002-03 as well as the order for Assessment Year 2003-04. Further, the Tribunal has decided the issue in favour of the assessee in assessee's own case for various years. Therefore, respectfully following the decision of the Tribunal in assessee's own case for different years and in the absence of any contrary material brought to our notice; this ground of the revenue is dismissed. Deduction u/s 8HHC - interest on housing loan - , the CIT(A) held that providing housing loans to employees is part of business exigency and therefore, such interest on housing loans is certainly income from business even though, it is not directly earned from business transactions. According to him, it is certainly includable with the business income and naturally it should be assessed as business income - Decided against the assessee.
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