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2005 (11) TMI 44 - HC - Income TaxCapital or revenue expenditure - "(1) Whether the Appellate Tribunal is right in allowing the claims of the assessee in respect of production bonus amounting to Rs. 7,32,449 apart from the staff bonus which was allowed? (2) Whether Tribunal is right in directing the Assessing Officer to allow the discount on sales amounting to Rs. 2,02,754 holding the same not to be caught by the mischief of section 37(3A)?" - in the absence of any infirmity in the impugned order of the Tribunal question No. 1 is required to be answered in the affirmative, i.e., in favour of the assessee and against the Revenue - In relation to the second question, it cannot be stated that the discount allowed on sales of diesel engines worth Rs. 2,02,754 could be treated to be sales promotion within the meaning of section 37(3A) read with section 37(3B) of the Act. The Tribunal was therefore right in holding that the said payment of discount could not be termed to be expenditure for sales promotion
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