TMI Blog2011 (2) TMI 434X X X X Extracts X X X X X X X X Extracts X X X X ..... buted, the assessee was not entitled to deductions thereof - the Tribunal has opined that it was a debatable issue. - Penalty not to be imopsed. share transfer expenditure - Club expenses - the Tribunal has recorded that this disallowance was made as the Assessing Officer suspected the same to be expenses relating to the share capital increase and on that count held it to be capital in nature - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (hereinafter referred to as "the Act"). The Assessing Officer found that though the aforesaid amount was earmarked and deposited in a separate account, unless the amount was actually ditributed, the assessee was not entitled to deductions thereof and coming to this conclusion, the Assessing Officer relied upon the judgment of the Supreme Court in the case of Punjab Distilling Industries Limited v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inafter referred to as "the Tribunal") vide the impugned order dated October 9, 2009 has deleted the penalty. 3. In so far as the claim of deduction under section 80M of the Act is concerned, the Tribunal has opined that it was a debatable issue. No doubt, as per the judgment of the Supreme Court in Punjab Distilling Industries Limited [1965] 57 ITR 1 (SC), the claim could not be made unless t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Once the appeal, i.e., I. T. A. No. 612 of 2004 preferred by the assessee has been admitted that would show that substantial question of law on the interpretation is involved. The issue is thus clearly debatable. 4. In so far as disallowance of share transfer expenses is concerned, the Tribunal has recorded that this disallowance was made as the Assessing Officer suspected the same to be ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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