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2010 (1) TMI 732 - HC - Income TaxRoyalty and extension fee - royalty, sales-tax, extension fees, etc. amount was not initially payable by the assessee but by the Forest Department. After the department had paid the amount to the State it claimed reimbursement under the contract from the assessee - Held that:- The question whether payment of Rs.3,62,51,690/- was on account of tax or other business expenditure was not considered by any of the authorities below. No plea was raised by the revenue before the authorities below that this amount was a tax and therefore, unless it was actually paid no deduction could be claimed under Section 43 B. The only plea taken was that the payment of the amount had not crystalised. The Tribunal held that the payment had crystalised in the particular year. This is a pure question of fact and not of law and we have to uphold this finding of the Tribunal that the payment had in fact crystalised in the year. - Decided in favor of assessee.
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