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2011 (9) TMI 635 - AT - Income TaxExpenditure in relation to exempt income - Section 14A - AO disallowed 5% - Assessee contended ratio of exempt income/ total income (2.09%) - Held Tat:- In view of Godrej and Boyce ( 2010 -TMI - 78448 - BOMBAY HIGH COURT ) case remanded back. Corporate Dividend Tax - Amalgamation sanctioned by High Court -Dividend already paid - Incidence of tax u/s.115-O on the distribution of dividend - Held That:- The payment of dividend distribution tax is not dependent on the ultimate chargeability to tax in the hands of the recipient of the dividend.
Deduction of Warranty provison without appreciating same as contigent liability - Held That:- Facts are not in dispute, on the basis of assessee own case,order of CIT(A) was upheld.
Taxability of foreign exchange gain - Capital or reveune - held that:- As rightly held by the CIT(A), the taxability has to be determined at the point of time when the profit arose. The subsequent utilisation, in our view was irrelevant, on the facts of the present case. - It is no doubt true that the onus in this regard was on the Assessee and the Assessee failed to discharge its onus. On the facts of this case, however, we do not see any reason to justify disallowance on this ground only, when at the point of time when the gain in question arose the funds were admittedly raised for meeting capital expenditure. We are also of the view that a mere credit to profit and loss account, on the facts of the present case, cannot be the reason to hold that the gain in question is revenue receipt chargeable to tax. - Decided in favor of assessee.
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