Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2017 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (11) TMI 1673 - HC - Income TaxDisallowance for payments made for donation - debited under the head of publicity expenses for which no evidence was produced to show that the same was incurred wholly and exclusively for the purpose of business - Held that:- Expenses of the payment which was made by A/c Payee Cheque and Audit Report was that the payment was made and therefore there is no question of verifying document. In that view of the matter, the view taken by the Tribunal is required to be accepted. Addition on account of interest payment to its sister concerns and other group companies at lower rate than it had to pay to the borrowers - Held that:- Borrowed fund advanced to a third party should be for commercial expediency if it is sought to be allowed under Section 36(1)(iii) Addition 40A - cash payments being not covered under Rule 6DD(g) - Held that:- It is notable that r.6DD(k) provides an exception in respect of cash payment which is made on a day on which the banks were closed. This proves that the object of the legislature is to provide exception in respect of such payment which is required to be made in cash or absence of banking facilities. Rule 6DD(h) must be interpreted keeping in view this object and purpose. Therefore, the cash payments recovered under section proviso to s. 40A(3) and r.6DD(h). AO is directed to delete the addition. Addition on account of repairs and maintenance - Held that:- AO has not challenged the veracity of the claim or the incurrence of the expenditure for the purpose of the business. In light of that we hereby delete the disallowance.
|