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2018 (6) TMI 416 - AT - Income TaxDisallowance of expenditure - Held that:- The assessee has debited expenditure under these heads in the assessment year 2008-09. While examining the correctness of the ITAT’s order, the Hon’ble High Court has observed that for the purpose business, the assessee has to maintain goodwill and continuity of business being provided by important members. Thus, in order to boost its business, the assessee could plan for providing certain incentives to the members. Following decision of the Hon’ble jurisdictional High Court in the case assessee’s own case, we allow this ground of appeal and delete disallowance. Disallowance of amortized premium - Held that:- The assessee is entitled for amortization of premium paid by it in acquiring scrip which were held till maturity. The ld.CIT(A) has appreciated this controversy, and hence this ground of appeal is rejected. Addition u/s 14A - Held that:- A presumption could be drawn that the assessee used interest free funds for earning such income. No interest could be disallowed as such. As far as half percent of average investment required to be considered for making disallowance is concerned, the ld.CIT(A) has already upheld disallowance upto ₹ 9.50 lakhs. The assessee has not challenged confirmation of such disallowance. It has raised grounds of appeal, but did not press at the time of hearing. Therefore, after taking into consideration the finding of the ld.CIT(A) we do not find any reason to interfere in it.
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