Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles SMS News Highlights
        Home        
Extracts
Home List
← Previous Next →

The Commissioner of Income Tax-8 Versus M/s Veco Engineering Ltd.

2015 (6) TMI 683 - BOMBAY HIGH COURT

Disallowance of expenditure - Tribunal deleting the disallowance holding that the disallowance intended to be made under Section 40A(2)(b) was apparently made by the Assessing Officer under Section 37(1) - Held that:- It is a common contention of the parties that, it is Section 40A(2)(b) of the Act which was invoked by the Assessing Officer while passing the assessment order and the challenge to the assessment order by the respondent assessee was also in context of Section 40A(2)(b) of the Act. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nation of the same could have either upheld the order of the Commissioner of Income Tax (Appeals) or set it aside. However, it is not open to the Tribunal to dismiss the appeal without examining the contention of the parties on a ground which is not urged by any of the parties. We also find that the issue raised by the appellant Revenue with regard to allowing the payment of ₹ 13.20 lacs has not been rightly examined by the Tribunal. It merely upheld the order of the Commissioner of Income .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

arch 2013 passed by the Income Tax Appellate Tribunal (the Tribunal). 3. The concerned assessment year is 2005-06. 4. The appellant urges the following questions of law for our consideration: (A) Whether the Tribunal was justified in allowing deduction of ₹ 13,20,000/- pertaining to Assessment Year 2004-05 without appreciating that as per the mercantile system of accounting, the said expenditure was even otherwise not allowable as a deduction against the profit of the present year? (B) Whe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

computation of income under Chapter, IVD, which includes section 37(1), also and thus there is no contradiction in the Assessing Officer's finding that the expenditure claimed by the assessee under Section 37(1) of the Act on account of the alleged reimbursement of expenses is disallowable in view of the overriding provisions of Section 40A(2) (b) of the Act. 5. The respondent assessee had paid an amount of ₹ 78.19 lacs to its sister company as corporate management fee, project managem .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the preceeding assessment year. The Assessing Officer did not accept the contention and disallowed the entire expenditure of ₹ 78.19 lacs (including ₹ 13.20 lacs) under Section 40A(2)(b) of the Act. 6. On appeal, the Commissioner of Income Tax (Appeals), by the impugned order, partly allowed the appeal of respondent assessee. It held that the entire payment of ₹ 13.20 lacs pertains to the preceding assessment year and allowed the appeal while it sustained the disallowance at 1 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

urred for the purpose of business. 8. Similarly, even the CIT(A) started his decision on 40A(2) (b) but ended up saying that the expenses are vouched and makes an adhoc disallowance of 10% on ₹ 64,99,029/-. Sections 40A(2)(b) and 37, have different roles to play. 9. Since neither of the contending parties are on same issue, as to which provision to be followed, even at the time of hearing the department did not ask for the amendment in the grounds, we feel that the appeal filed does not, i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Discussion Forum
what is new what is new
 


Share:            

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version