Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2010 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (3) TMI 299 - HC - Income TaxRoll over charges/expenditure – entertainment expenditure - unclaimed credit balances unilaterally written back (credited to Profit & Loss Account) - Held that: - ₹ 6,89,881/, being roll over charges/expenditure paid to banks in respect of repayment of principal amount of foreign exchange loans taken for capital investments can not be allowed as deductible expenditure - The expenditure incurred by the assessee to the extent of 25% of the overall expenditure in question could legitimately be regarded as a fair estimate of what was incurred by the assessee for its employees at a place of work - The claims of the customers had become barred by limitation. In these circumstances, the assessee having treated the money as its own money and having transferred it to the profit and loss account, the Supreme Court held that the amount representing unclaimed credit balances would be treated as the assessee’s income and was liable to be taxed. The decision in Sundaram Iyengar’s case [2008 -TMI - 5532 - SUPREME Court] consequently rested on these specific facts. On the other hand the subsequent decision in Sugauli Sugar Works [2008 -TMI - 5715 - SUPREME Court] specifically deals with the issue in hand and would cover the case against the Revenue - unclaimed credit balances unilaterally written back is not taxable
|