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2019 (4) TMI 217 - KERALA HIGH COURTDisallowance of club expenses - expenses other than the membership fee were mainly food expenses and therefore they were in the nature of 'personal expenses' which is not admissible under Section 37(1) - HELD THAT:- It is true that the expenditure incurred by the assessee for procuring the 'club membership' was a matter considered in the previous assessment years and the benefit given was sought to be restricted only in respect of such amount and the remaining part spent for availing the facilities was held as taxable. In the instant case, the total amount claimed by the assessee included the expenses for food and such other facilities as assessed by the Assessing Officer and hence it was disallowed by the Assessing Officer. The said finding on fact, which was upheld by the Commissioner (Appeals), ought not to have been altered by the Tribunal, holding that the issue was already found in favour of the assessee. The order passed by the Assessing Officer and affirmed by the Commissioner, disallowing a sum under the head ‘club expenses’ is liable to be sustained. - Decided against assessee Contribution made to the Employees' Welfare Fund Trust - HELD THAT:- Referring to stand of the assessee is that it was only to facilitate transportation of the employees as per the service conditions and never amounts to any diversion of funds as alleged by the Revenue. Similar question with reference to Section 40A(9) in respect of the previous assessment years has already been considered by this Court and answered in favour of the assessee. This being the position, similar course will follow in the present case as well and there is no question of law to be considered. Disallowance u/s 14A - HELD THAT:- Mandate of Section 14A can be valid and effective only from the assessment year 2007-2008, in view of the law declared in categorical terms by the Apex Court in Commissioner of Income Tax Vs. Essar Teleholdings Ltd. [2018 (2) TMI 115 - SUPREME COURT OF INDIA] and the AY in question is Assessment year 2000-2001. - Decided in favour of assessee
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