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2020 (1) TMI 446 - AT - Income TaxDeduction of various expenditure - Community Welfare Expenses - Temple Expenses - Prior Years Expenses - Mines Prospecting Expenses - expenses on Powerline, Marine Structure, Road & Railway Sidings - Held that:- Following the decision in the earlier years, claim of expenses allowed and additions deleted. Employees stock option expenses - Held that:- the assessee has been allowed ESOP expenses as claimed in the Profit & Loss Account and therefore, the resultant surplus / gains would be fully taxable, applying the same analogy. Accordingly, the reduction of income by ₹ 5.62 Lacs (including surplus of ₹ 1.10 Lacs) as done by Ld. AO would not be warranted. - to settle the things as per earlier decisions, we direct Ld. AO not to reduce the total income by ₹ 5.62 Lacs. Disallowance u/s 35D being preliminary expenses - Held that:- The Ld. CIT(A) allowed the same since in earlier AYs, it was held by first appellate authorities that the expenses were incurred for extension of business and therefore covered by Sec. 35D(2) of the Act. However, it was held that the deduction would start from year in which the project starts commercial production. Since, the project had started commercial production in June, 2002, the deduction of the same would be allowable to the assessee. Credit for MAT for the purposes of Charging interest u/s 234B - Held that:- The assessee was found eligible to claim MAT credit of ₹ 585.04 Lacs as per Sec.115JAA and therefore, the credit of the same was allowed. However, interest u/s 234B was computed before adjusting MAT credit. - interest was to be charged only after adjustment of tax credit.
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