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2014 (5) TMI 322 - HC - Income TaxSustenance of 50% of disallowance towards travelling expenses Held that:- The disallowance is sustained to the extent of 50% - the trips have been undertaken by the employees - there is no dispute with regard to the trips but the extent of the material required to be produced that the Tribunal has sustained the disallowance partially thus, no substantial question of law arises for consideration Decided against Revenue. Admission of appeal - Guest house expenses Held that:- The Tribunal has assigned cogent and satisfactory reasons - The expenditure incurred on maintenance of guest house is an issue which has been examined Relying upon Britannia Industries Ltd. v/s CIT [2005 (10) TMI 30 - SUPREME Court] - factual matters have to be verified and examined in the light of the legal principles that the matter has been remitted back to the AO as such the direction does not raise any substantial question of law Decided against Revenue. Fully convertible FCCBs into equity shares Held that:- The CIT(A) had confirmed the disallowance on the footing that the bonds were fully convertible into shares, the issue of bonds was made after creating an authorized capital and which could take into account stock of shares, therefore, a debatable question is raised the appeal admitted on this question Decided in favour of Revenue. Development expenses Applicability of section 35AB of the Act Held that:- The Tribunal has considered the matter essentially in the light of the factual position brought on record - The matter has been decided in the light of the payment made to the M.S.E.B. as non- refundable and that is towards consumers' contribution/service charges on account of availing additional power - the fact that the claim of development expenses has been examined by the Tribunal in the light of the provisions of Section 35AB of the Act this aspect is also admitted to be considered - Decided in favour of Revenue. Deletion made u/s 40(A)(9) of the Act Held that:- The Tribunal rightly noted that the expenses already incurred are reduced and the balance was accounted as provision - This is found to be an admissible deduction - the provision for pending labour demands and its disallowance made by the AO is rightly deleted - The Tribunal has found that the demands were pending - There was wage issue raised by the labour unions and, therefore, in the given facts and circumstances and to maintain industrial harmony and peace, the assessee company made a provision of Rs.537.09 - The revenue may term it as contingent in nature thus, as such there is no substantial question of law arises for consideration Decided against Revenue.
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