Home Case Index All Cases Income Tax Income Tax + SC Income Tax - 2012 (9) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (9) TMI 373 - SC - Income TaxNon entitlement to deduction of the 'provision' made in respect of irrecoverable Non Performing Assets - Held that:- Decided in favour of Revenue as decided in M/s Southern Technologies Ltd. versus Joint Commnr. of Income Tax, Coimbatore [2010 (1) TMI 5 - SUPREME COURT OF INDIA] Provision for possible loss are only notional for purposes of disclosure, hence, they cannot be made an excuse for claiming deduction under the IT Act, hence, "add back" - against assessee. Contingent deposits from the leasing/hire purchase customers with a view to protect themselves from sales tax liability. - ITAT treated it as assessee's income - Held that:- It is now well settled that in determining whether a receipt is liable to be taxed, the taxing authorities cannot ignore the legal character of the transaction which is the source of the receipt - As in the present case, the assessee received Rs. 36,47,585/- in the assessment year 1998-99 and as per his own statement in Court the said sum was not kept in a separate interest bearing bank account but it formed part of the business turnover. - In view of the said statement no reason to interfere with the impugned judgment constituting the addition to the income. - The said amount was part of the turnover. The said amount was collected from the customers. The said amount was collected towards sales tax liability - against assessee. Decision in the case of Bazpur Co-operative Sugar Factory Ltd. (1988 (5) TMI 4 - SUPREME COURT) distinguished.
|