Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2019 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (11) TMI 549 - HC - Income TaxAddition u/s 40A - Disallowance of reimbursed by the company to an institute established for running a school at Satna - Whether running of school is not a business activity of the company and that the payment is hit by the provisions of section 40A(9)? - HELD THAT:- As held that the amount paid to an institute for running a school at Satna in Madhya Pradesh, was not hit by Section 40A(9) as it was in the nature of reimbursement of expenditure. This by following the decision of this Court in CIT vs. Glaxo Smithkline Pharmaceuticals Ltd. [2012 (3) TMI 565 - BOMBAY HIGH COURT] and Apex Court’s decision in Kennametal (I) Ltd., v/s. CIT [2013 (2) TMI 627 - SC ORDER] Thus, the question (b) as proposed does not give rise to any substantial question of law. Thus, not entertained. Appeal admitted on the substantial question of law at (a) - Tribunal was justified in upholding the order of the CIT(A) in deleting disallowance reimbursed by the company to an institute established for running a school at Satna without appreciating the fact that running of school is not a business activity of the company and that the payment is hit by the provisions of section 40A(9)?”
|