Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (1) TMI 522 - HC - Income TaxCommission paid on domestic sales - unreasonable and excessive expenditure - Held that:- The assessee had taken a positive stand that he had paid commission for sourcing of raw material etc. The Assessing Officer, however, did not carry out any inquiry and by summarily holding that the assessee has not been able to place on record any confirmation, disallowed ₹ 92.00 lacs allegedly paid on account of commissions. ITAT has merely restored the matter to the assessing officer for examining the matter afresh by reference to the identity of the recipients and the nature of transactions said to be commissions paid by the assessee. Thus find no error of jurisdiction much less of law that would enable us to hold in favour of the revenue or to hold that the discretion exercised by the Tribunal is perverse or arbitrary. - Decided against the revenue. Dis allowance u/s 14A - Held that:- Alleged interest received by the assessee under Section 36(I) (iii) of the Act, the Assessing Officer has by a sleigh of hand made an attempt to place this income under Section 14A of the Act. Admittedly the investment was made in the year 1996 and though the assessee may have received interest and dividend at one stage but for the last over a decade M/s HMGV is before BIFR and has not been paying any interest to the assessee. The investment as is apparent from the facts was made as a business expediency to procure raw material manufactured by M/s Hindustan Max GB Ltd. The Income Tax Appellate Tribunal, therefore, rightly deleted the addition made by the assessing officer, under Section 14A of the Act. - Decided against the revenue.
|