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2013 (10) TMI 547 - AT - Income TaxDisallowance of non-performing investments written off - Whether the notional loss said to be suffered by the taxpayer on revaluation of the securities is allowable as deduction or not - Held that:- taxing authority disallowed the claim of the taxpayer on the ground that the balance-sheet of the respective companies was not filed to establish the valuation. The contention of the taxpayer is that the valuation was made on the basis of the guideline issued by RBI taking into consideration the realisable value. In fact, as seen from the order of the Commissioner of Income-tax(A), the taxpayer claimed that the revaluation was made on the basis of the guideline issued by the RBI and the value is based on realisable value. The taxpayer has also brought to the notice of the lower authorities that in spite of their best effort, they could not get the copies of the balance-sheet from the respective company. Admittedly, the assessing authority has not suggested any formula for valuation of the unquoted shares - Following decision of Commissioner of Income-Tax Versus Nedungadi Bank Ltd. [2002 (11) TMI 29 - KERALA High Court] - Decided in favour assessee. Disallowance of pension paid - Held that:- if the amount received from the pension fund is credited to the profit & loss account of the taxpayer and then the taxpayer makes the payment to the retired employees as pension, then there may not be any duplication at all. But it has to be verified whether the amount received from the pension fund is credited in the profit & loss account or not. It also needs to be examined whether any payment is made to the retired employees from the pension fund directly. If no payment is made from the pension fund directly and the entire amount received from the pension fund is credited in the profit & loss account and then the taxpayer makes the payment to its retired employees by debiting the same in the profit & loss account, then the amount paid by the taxpayer as pension has to be allowed as deduction in view of the contractual obligation to pay the pension - Decided in favor of assessee.
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