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2015 (2) TMI 774 - DELHI HIGH COURTPrior period expenses - liability for over a 12 year period - Disallowance for salary of Managers, Officers on deputation from Hindustan Lever Ltd. for the earlier years - Tribunal deleted disallowance - Held that:- So far as the sum of ₹1.52 crores is concerned, HLL never appears to have pressed for the arrears of wages and salaries for its employees for the period 1999-2003 to the extent claimed by the assessee on the basis of the debit note. Furthermore, large part of those amounts was in fact time-barred. That the debit note demanded ₹1.52 crores may be a matter of record. There is no evidence on the record that at any time during the relevant period 1999-2003 provisions were ever made on the basis of any material to suspect such claims by HLL. At the same time the Court cannot ignore the circumstance that the overwhelming majority of the Board of Directors of the assessee was comprised of HLL’s nominees who could conveniently impose this law which they did. The palpable exaggeration of this claim is also evident from the fact that HLL subsequently in the year 2013 conceded that it only claimed ₹81,22,072/-, which was payable towards the balance part of the payment of salaries of supervisors etc. In the circumstances, this Court is of the opinion that the ITAT’s reasoning affirming the order of the CIT(A) is entirely without justification. - Decided in favour of the revenue. Additional payment for earlier years towards short payment of processing charges - Tribunal confirmed deletion of addition done by CIT(A) - Held that:- Both the CIT and the ITAT took note of the fact that these amounts were disputed and were mere claims. The Company Court rejected it in its judgment dated 25.4.2013. In these circumstances, the Court finds no reason to interfere with the impugned judgment and the question of law is accordingly answered in affirmity and against the revenue.
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