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2015 (2) TMI 809 - ANDHRA PRADESH HIGH COURTDisallowance of interest payments - whether assessee entitled to deduct the interest paid on the loans borrowed by it, in its profit and loss account? - Held that:- matter needs to be examined by the Tribunal with reference to the relevant record, duly giving opportunity to both the parties. Expenditure on construction of building - whether meant for its commercial use, partakes of the character of revenue expenditure and deductible from the income ? - Tribunal allowed claim of revenue expenditure - Held that:- Tribunal has simply concurred with the view expressed by the Commissioner just by taking into account, the claim made by the respondent for the assessment year 1982-83 and the fact that the cost of construction incurred by it be treated as revenue expenditure was accepted. Beyond that, no discussion whatever was undertaken. Things would have been different in case the Commissioner has undertaken any discussion with reference to the relevant provisions of law and the facts pleaded by the parties. The purport of Explanation 1 to section 36 of the Act was not discussed at all. It was obligatory on the part of the Commissioner, or for that matter, the Tribunal, to examine whether the building in question was owned by the respondent or was taken on lease and whether the construction undertaken by it was permanent or semi- permanent in nature. - Decided in favour of revenue for statistical purposes.
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