Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2006 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2006 (9) TMI 122 - HC - Income TaxAppellant-Corporation is a body corporate constituted under the Warehousing Corporation Act, 1962, and is an authority within the meaning of section 10(29) of IT Act, 1961 – AO passed the assessment orders holding that the income from the warehousing business is exempt u/s 10(29) but the income from ancillary activities is taxable - AO will have to examine whether the business of the assessee is one and indivisible and on the findings of such examination to decide whether the entire expenditure incurred thereon is to be allowed or not - If it is found that the business of the assessee is one and indivisible and yielding both taxable and non-taxable income, the entire amount spent would be deductible - Since the Assessing Officer is seized of the matter, it would not be appropriate to refer the matter back to the learned Tribunal for reappreciation of facts and finalisation of assessment – AO shall make reassessment in terms of the observation made above
|