Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

The Commissioner of Income Tax-IV Versus Sunil Vishwambharnath Tiwari

2015 (9) TMI 806 - BOMBAY HIGH COURT

Eligibility for deduction under section 80IB - additions were made u/s 40(a)(ia) for TDS default - whether ITAT was justified in holding that the disallowance made under section 40(a)(ia) separately is not permissible under the scheme of the Income Tax Act? - Held that:- The fact that TDS was not effected by the respondent assessee, is not in dispute. In view of the scheme of Section 40 of the Act, as TDS is not effected, payment to contractors cannot be deducted, as those expenditure become ina .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

out of gross total income and other sections of Chapter VIA, which do not make such reference to gross total income, has been explained. CIT (appeals) has correctly pointed out that the deduction allowable under Section 80IB(10) of the Act is with reference to the respondents gross total income. Hence, disallowance under Section 40[a] [ia] cannot be treated separately and it gets added back to the gross total income of the assessee. Section 40 itself points out that due to error of assessee, suc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

, Advocate JUDGMENT ( Per B. P. Dharmadhikari, J ) Heard Shri Anand Parchure, learned Counsel for the appellant and Shri N.S. Bhattad, learned Counsel for the respondent. 2. By this appeal filed under Section 260A of the Income Tax Act, 1961, the appellant Income Tax Department has sought to raise following two questions, as substantial questions of law : (1) Whether on the facts and in the circumstances of the case that ITAT was correct in holding that the entire amount of gross total income of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ort), is not in dispute, filed a return in Assessment Year 2006-07 for accounting period 01.04.2005 to 31.03.2006, claiming deduction of ₹ 16,82,121/under that provision. It was taken up for scrutiny, and an order under Section 143(3) of the Act came to be passed, disallowing the expenses under Section 40[a][ia] of the Act for not deducting TDS at source. Thus, payment of ₹ 83,00,738/under the head Subcontract payment; ₹ 1,75,000/as Commission payments and ₹ 7,96,375/as A .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

which rejected that appeal. 5. Shri Parchure, learned counsel appearing on behalf of the appellant/department submits that the correctness or otherwise of disallowance is not in dispute before this Court. Violation of Section 194C and 194H of the Act is accepted, and as such, the disallowance was not arising out of eligible business. He states that the word derived from cannot have such wide impact, so as to include any income which can in some manner be attributed to the business. It is furthe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ned counsel for the respondent - assessee on the other hand states that in said matter decided by this Court, the assessee M/s. Shirke Constructions and Equipments Ltd., also had other sources of income, and hence application of mind therein needs to be understood properly. Here, the respondent - assessee (Sunil Vishambharnath Tiwari) does not have any other source of income, except eligible business and this fact is not in dispute. Therefore, the deduction of payment made to contractor is out o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

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

Go to Mobile Version