Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (7) TMI 606 - HC - Income TaxAmortization of expenses u/s 35DDA of the Act - Amount paid to employees as severance pay – Held that:- The Tribunal has rightly held that the Assessee would be entitled to the deduction in relation to severance pay – though the assessee would not be entitled to the deduction u/s 37(1) of the Act but u/s 35DDA - the deduction claimed by the Assessee will have to be amortized u/s 35DDA and only 1/5th of the expenditure was allowable in the current AYs and the Assessee would be entitled to deduction of the amount in each of the four subsequent AYs as well - it is only on the ground that the manufacturing activity of the Assessee had ceased that the AO disallowed the deduction - there is no justification for denying the deduction to the Assessee Company and granting the same as per the provisions of section 35DDA of the Act - the order of the Tribunal cannot be faulted on any ground – thus, no substantial question of law arises for consideration – Decided against Revenue.
|