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2017 (4) TMI 975 - SC - Income TaxPrim-facie adjustment u/s 143(1) intimation - Expenditure on advertisement and public issue - whether public issue expenses were covered by Section 35D or Section 37? - High Court dismissed the appeal on the ground that a debatable issue cannot be disallowed while processing return of income under Section 143(1)(a) of the Act - Held that:- Even though it is a debatable issue but as Gujarat High Court in the case of Ahmedabad Mfg. & Calico (P) Ltd. (1986 (2) TMI 25 - GUJARAT High Court) had taken a view that it is capital expenditure which was subsequently followed by Alembic Glass Industries Ltd. V. CIT (1992 (9) TMI 49 - GUJARAT High Court) and the registered office of the respondent assessee being in the State of Gujarat, the law laid down by the Gujarat High Court was binding. In view of all the submissions, in our considered view the order passed by the CIT (Appeals), the Income Tax Appellate Tribunal and also the order of the Gujarat High Court impugned herein cannot sustain and are set aside as they have wrongly held that the issue was debatable and could not be considered in the proceedings under section 143 (1) of the Act. With the aforesaid observations, the Appeal succeeds and the same is allowed.
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