Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2006 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2006 (5) TMI 70 - HC - Income TaxVariation of closing stock declared in return and in the stock statement given to the bank - Royalty - "1. Whether Tribunal was justified in holding the arbitrary fixation of royalty payment by the lower authority by invoking the provisions of section 40A(2), when the transaction was held to be genuine and there was no material to establish the market value of the services rendered, especially when the agreed royalty had been paid to the contracting party by the appellant? 2. Whether the Tribunal was justified in ignoring the closing stock as shown by the appellant which was subjected to audit u/s 44AB to support the value of closing stock declared to the bank? 3. Whether the Tribunal was justified in upholding the impugned addition on account of variation in the value of closing stock between the value declared in the accounts and the value declared to the bank as made by the assessing authority when the assessing authority did not either follow the value shown in the accounts in full or the value as shown in the bank statement in full?" - We answer the first question in favour of the assessee. We further answer questions Nos. 2 and 3 in favour of the Revenue.
|