Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2011 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (10) TMI 495 - AT - Income TaxDepreciation on motor car - disallowance as car purchased in the name of the director of the company - Held that:- It is shown as asset in the balance-sheet of the company. If expenditure for running the vehicle was incurred by the assessee, the assessee is de facto owner of the vehicle - as decided in CIT vs Mohd. Bux Shokat Ali [2001 (2) TMI 26 - RAJASTHAN HIGH COURT] where vehicle was purchased by the firm used by it for the purpose of its business but it was registered in the name of one of the partners then the firm would be entitled to depreciation on vehicle. Also as decided in CIT Versus Basti Sugar Mills Co. Ltd. [2002 (5) TMI 27 - DELHI High Court] where vehicle was owned and used by the assessee but no registration was done in its name then the assessee would still be entitled to depreciation on such vehicle - Decided in favor of the assessee. Deduction u/s 80-IB - Held that:- The process of crushing, grinding and sieving FMA slabs into lumps, chips and powder creates three end products which have different physical shapes, different chemical composition of iron, molybdenum and silicon and have different chemical properties such as different melting points and are used by different industries. Their use is not interchangeable, in the place of lumps, chips or powder or slabs as such cannot be used. These end products are known by different names in commercial world and therefore, the process employed by the assessee would amount to manufacture and, therefore, the assessee would be entitled to deduction under section 80-IB - Decided in favor of the assessee. Eligibility of Excise Income, Interest from various parties, Insurance claim received for shortage material, Miscellaneous income received from sale of non-excisable waste material for deduction u/s 80IB - Held that:- As amount is debited in P/L A/c at time of its payment and get credited at time of refund rendering net effect to be nil. Therefore, there is no reason to exclude the excise duty in arriving at profit derived for the purpose of deduction u/s 80-IB. See CIT v. Dharam Pal Prem Chand Ltd (2008 (11) TMI 231 - DELHI HIGH COURT) - Decided in favour of the assessee. Interest from various parties - assessee contended it to be pertaining to the late payment and the credit facility availed of by those parties - Held that:- In view of Nirma Industries Ltd. v. DCIT( 2006 (2) TMI 92 - GUJARAT HIGH COURT) the assessee is directed to establish the above fact before the AO, if found correct, eligible deduction u/s 80-IB should be recomputed. Miscellaneous income received from sale of non-excisable waste material - Held that:- As the requisite details were not examined by the Assessing Officer and merely stated that the said income was to be excluded for the purpose of computing the deduction under section 80-IB this part of this ground remitted back to the Assessing Officer considering the case of Deputy CIT v. Harjivandas Juthabhai Zaveri [1999 (12) TMI 5 - GUJARAT HIGH COURT] - in favour of assessee by way of remand.
|