Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2012 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (3) TMI 81 - HC - Income TaxProvision for Contingent liability not made by way of debit to P&l A/c - passed in the books of account of transferee company at the time of take over of assets and liability as per the scheme of the arrangement Revenue invoking Section 41(1) Held that:- In present case, provision was made by increasing investment and creating provision for contingency by corrosponding amount, i.e. routed through balance sheet only and not by way of debit to P&L A/c. Thereby, assessee had not obtained any benefit in earlier A.Y. Hence, order of Tribunal holding inapplicability of Section 41(1) is upheld Decided against the Revenue. Dis-allowance u/s 14A Held that:- Since ITAT has remitted the matter to the A.O. therefore it is directed to A.O. to compute in light of judgement in case of Maxopp Investment Ltd. vs. CIT (2011 - TMI - 208569 - Delhi High Court).
|