9911796707
TMI Blog2016 (11) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... he appeal relates to the assessment year 1994-95. The substantial questions of law on which the appeal was admitted are quoted here-under:- Substantial Question of law No.1. "(1) Whether on the facts and in the circumstances of the case, the Tribunal is justified in directing the A.O. to examine the relevant clauses of the scheme and the fact relating to the alleged subsidies and thereafter allow the claim of the assessee in view of the order of Tribunal dated 30.11.1999 in the case of Simbholi Sugar Mills Ltd. ITA No.1439/Del/1990 for A/Y 1986-87 in as much as the facts of the case relied upon by the Tribunal are not similar and identical to the facts of the present case?" Insofar as the first question is concerned, having heard learne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... employed such experienced professional it would have costed it much more than Rs. 4 lacs per month. The Tribunal has further recorded findings of fact that the AO himself has allowed the deduction of rupees one lac per month paid to M/s Dhampur Sugar Mills Ltd, hence, he has not doubted the fact of service rendered to the assessee. The Tribunal further found that AO has invoked provisions of Section 40A(2) of the Income Tax Act and has not brought any material on record to show that how the expenses claimed by the assessee were unreasonable or excessive. The Tribunal further found that it is for the businessman to decide what expenses are essential in the conduct of his business and the AO cannot enter into the shoes of a businessman and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned Counsel for the assessee has relied on a decision of this Court in the case of Commissioner of Income Tax vs. Modi Xerox reported in (2012) 344 ITR 407 (All.) wherein a similar issue has been considered and the rental paid for various items by the assessee who are allowed. Reference may be had to paragraph no.9 & 10 of the said judgement, which reads as hereunder:- "9. So far as question no. (6) is concerned, this Court has held as follows:- "We are of the considered opinion that the Tribunal was justified in allowing the assessee's claim partly towards the finance charges and partly as lease charges. We may mention here that there is no dispute that the money had not passed from the lessor/purchaser to the assessee company and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts and in the circumstances of the case, the Tribunal is justified in deleting the addition of Rs. 42,28,640/- made on account of interest payable to Dhampur Sugar Mills provided in the books of account without appreciating the facts of the case?" Learned Counsel for the revenue has sought to argue that while giving the details the yearwise breakup was not given by the assessee. However, the findings recorded by the Tribunal are otherwise and it has relied on a decision of Hon'ble Apex Court in the case of Kedarnath Jute Manufacturing Co. Ltd. vs. Commissioner of Income Tax reported in 82 ITR 363 wherein the Hon'ble Apex Court decided that ascertained liability was allowable deduction to the assessee while computing the income, ev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ating thereto not on what view and the assessee might take of his rights nor can the existence or absence of entries in the books of account be decisive or conclusive in the matter. Thus, not making the entries in the books of account would not disentitle the claim of deduction for the amount of interest payable on Government loans, which accrued during the year under consideration. In view of the above discussion, the second question is answered in the affirmative, i.e., in favour of the assessee and against the Revenue." Therefore, the substantial question of law no.7 too is decided infavour of the assessee and against the department. Substantial Question of law No.8. "Whether on the facts and in the circumstances of the case, the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
