Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (1) TMI 1486 - AT - Income TaxNature of expenditure - sales promotion expenses towards obtaining certificate of suitability - revenue or capital expenditure - AO observed that the assessee incurred expenditure for obtaining certificate of suitability for marketing its products there - HELD THAT:- Admittedly the expenditure incurred is not preproduction expenditure. The assessee has been marketing products elsewhere and thus it can be said that the assessee is already in the business of manufacture and sale of drugs. To expand the business in certain countries it has to obtain certificate of suitability as per the FDA Regulations, which is a part of the process of sale of its products. Similar expenditure was considered in Cadila Healthcare Ltd. [2013 (3) TMI 539 - GUJARAT HIGH COURT] wherein it was held that such payments should be considered in the revenue field. No decision of any other High Court, wherein contrary view taken, was placed before us by the Revenue. Thus hold that the view taken by Hon'ble Gujarat High Court is in accordance with law. In the result, ground No. 1 of the Revenue is dismissed. MAT credit u/s. 115JA - AO had reduced the MAT credit to Nil due to additions/disallowances made during scrutiny assessment for A.Y. 2006-07 - While computing the tax liability the Assessing Officer set off the amount of MAT credit excluding surcharge and cess from the amount of tax payable after surcharge and cess - HELD THAT:- As appellant has requested for grant of relief in respect of MAT credit, in case, relief is granted by the higher authorities, there is no need to adjudicate upon this request of the appellant as such relief would be automatic. AO shall consider the relief granted by the higher appellate authorities and compute the MAT Credit accordingly and as per law. Regarding the amount of MAT credit, the amount of MAT credit excluding surcharge and cess cannot be set off from tax payable after surcharge and cess. Thus, following the principle of consistency and justice, the Assessing Officer is directed to give MAT credit which is inclusive of surcharge and cess from the amount of tax payable inclusive of surcharge and cess. Appeal filed by the Revenue is dismissed.
|