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2020 (11) TMI 403 - AT - Income TaxAllowable exempenditure u/s 37(1) - Distribution of profit - payment of rate difference after the closure of the accounting year - commercial expediency - Whether amount to be paid was not out of the profits ascertained at the Annual General Meeting ? - HELD THAT:- The issue is covered in its own decision by the Hon’ble Bombay High [2009 (4) TMI 19 - BOMBAY HIGH COURT] while making the addition, the A. O. has only followed the assessment order of the earlier year without bringing any new facts on record. - Addition made on account of milk rate difference is deleted. The amount which is the subject-matter is paid to members who supply milk and in some case also to non-members. The payment is for the quantity of milk supplied and in terms of the quality supplied. The commercial expediency for payment of this price are the market conditions, and the need to procure more milk from the members and non-members to the assessee. To our mind, therefore, the amount paid by no stretch of imagination can be said to be dividend to the members or shareholders or payment in the form of bonus as bonus also has to be paid from the accrued profits. - Decided in favour of assessee. Depreciation on fixed assets on project without deducting subsidy received from National Dairy Development Board (NDDB) - HELD THAT:- The issue is decided in its favour by the ITAT, Pune Bench . [2018 (8) TMI 1996 - ITAT PUNE] - Also the Hon’ble Bombay High Court in assessee’s own case [2009 (4) TMI 19 - BOMBAY HIGH COURT] has dismissed the Revenue’s appeal on the above issue.
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