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 →

Kanhaiyalal Dudheria Versus Joint Commissioner of Income-tax, Bellary

Disallowance of expenditure incurred in construction of house meant for flood victims called 'Social Welfare Expenditure' - Held that:- Once the assessee discharges this onus, assessee would be entitled to deduction u/s 37(1). In the present case, no factual condition was laid by the assessee to establish that this expenditure was incurred for business purpose nor any attempt is discernible before the lower authorities. Mere bald assertion that the expenditure was incurred for promoting business .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s to mention, these kind of contracts are opposed to public policy and void under the provisions of section 23 of the Contract Act. Therefore, it cannot be said that the appellant had incurred this expenditure wholly and exclusively for the purpose of business. - Decided against assessee. - IT APPEAL NOS. 782 & 1495/BANG./2016 - Dated:- 17-5-2017 - VIJAY PAL RAO, JUDICIAL MEMBER, AND INTURI RAMA RAO, ACCOUNTANT MEMBER For The Appellant : B.S. Balachandran For The Respondent : G. Kalamadar ORDER .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

orders of the Learned Lower Authorities are bad in law and contrary to the evidences and facts on record. 2. The Learned CIT(A) has erred in upholding the disallowance of ₹ 10,823/- without appreciating that the expenditure was not prohibited by law or in the nature specified by Explanation under section 37 (1). 3. The Learned CIT-(A) erred in not appreciating that social welfare expense of ₹ 1,61,30,480/- is a legitimate business expenditure and ought not to have been disallowed by .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Return of income for the assessment year 2011-12 was filed vide electronic mode on 30/9/2011 declaring income of ₹ 84,57,630/-. After processing said return of income u/s 143(1) of the Income-tax Act, 1961 ['the Act' for short] the case was selected for scrutiny assessment by issuing notice u/s 143(2) dated 18/9/2013 and the assessment was finally completed at total income of ₹ 18,45,98,940/-. The disparity between the assessed income and the returned income is on account 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

roviding houses to the affected people. The appellant readily agreed to do same and entered MOU with the Govt. of Karnataka in terms of which the appellant was required to construct houses and deliver same to the Government. Accordingly, the appellant constructed houses and handed 169 houses to the Government. During the previous year relevant to assessment year under consideration, an expenditure of ₹ 1,61,30,48/- was incurred towards construction of 169 houses in Gundiganur village in Si .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

purpose of business and therefore held that not allowable as deduction u/s 37(1) of the Act. Accordingly, he disallowed the same. The AO disallowed a sum of ₹ 1,61,30,480/- incurred in construction of said houses. The AO also disallowed ₹ 10,823/- being penalty paid and debited to P&L Account. 5. Being aggrieved, an appeal was preferred before the CIT(A), who, vide impugned order confirmed the order of the AO. Being aggrieved, the assessee is in appeal before us in the present 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

urring of expenditure, goodwill is created in the people in the surrounding villages which would help in carrying out business. Thus, it was submitted that same should be allowed as deduction. Reliance was placed on the co-ordinate bench decision in the case of Asstt. CIT v. Jindal Power Ltd. [2016] 70 taxmann.com 389 (Raipur - Trib.) and the decision of the Hon'ble High Court of Karnataka in the case of CIT v. Infosys Technologies Ltd. [2014] 360 ITR 714. On the other hand, learned Standing .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

elp people who were rendered homeless on account of unprecedented floods in Siriguppa Taluk and handed over to the Government of Karnataka is allowable as deduction u/s 37(1) of the Act or not. It is not disputed fact that this expenditure was incurred by the assessee voluntarily. In order to claim deduction u/s 37(1) the conditions to be satisfied are that a item of expenditure should not be an item of expenditure described in sections 30 to 36 and should not be described as capital expenditure .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

it is not necessary to establish the necessity of incurring of such expenditure. It is only if it is for promoting business, as held by the Hon'ble Supreme Court in the case of Sassoon J. David & Co. (P.) Ltd. v. CIT [1979] 118 ITR 261 wherein it has been held as under: It is relevant to refer at this stage to the. legislative history of section 37 of the Income-tax Act, 1961, which corresponds to section 10(2)(xv) of the Act. An attempt was made in the Income-tax Bill of 1961 to lay do .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

somebody other than the assessee is also benefited by the expenditure should not come in the way of an expenditure being allowed by way of deduction under section 10(2)(xv) of the Act if it satisfied otherwise the tests laid down by law . Again, the words for the purpose of business used in section 37(1) should not be limited to the meaning of earning profit alone . Business expediency or commercial expediency may require providing facilities like school, hospital, etc., for the employees of the .....

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
  ↓     Latest Happenings     ↓  

Forum: GST on RCM on rent in a unregistered state

Forum: COMPOSITION SCHEME

Forum: Input Tax Credit - Reg

Forum: GST Invoice

Article: Websites of Government Departments need lot of improvement. We are noticing detoriations in them for example, case of website of ITAT.

Highlight: Levy of additions tax u/s 115O on distribution of dividend - shares of its profits declared as distributable among the shareholders is not impressed with the character of the profit from which it reaches the hands of the shareholder - not to be bifurcated as agriculture and non-agriculture dividend - SC

Highlight: Rate of GST on old and scrap buses - 28% or 18% - at such initial tender process initiated by the Respondents-KSRTC, the present petitions filed by the petitioners are premature and misconceived and do not require any interference by this Court at this stage. - HC

Forum: Rent a cab operator

Highlight: In view of amendment made u/s 132A of the Income Tax Act, 1961 by Finance Act of 2017, the 'reason to believe' or 'reason to suspect', as the case may be, shall not be disclosed to any person or any authority or the Appellate Tribunal, SC dismissed the appeal of the assessee

Highlight: Validity of Assessment Order - period of limitation u/s 153 (2A) is applicable even if the entire order was not set aside but matter was remanded back for for limited aspects with directions - HC

News: Note ban was a shake-up, achieved its main objectives

Notification: Amendments in the notification No.5/2017- Integrated Tax (Rate) dated the 28th June, 2017.

Highlight: Levying interest u/s 234C - interest is to be charged on the returned income and not on assessed income.

Highlight: Accrual of income - sale of right to develop and sell incentive FSI under LOI - till the conditions of LOI are fulfilled transfer is not complete and income does not accrue to the assessee

Highlight: TPA - determination of ALP - TP adjustment by applying Bright Line Test (BLT) is not sustainable on protective basis having no statutory mandate.

Highlight: Safeguard Duty - Advance License Scheme - as there is no exemption from safeguard duty leviable under Section 8C, which is imposed on the goods imported from China, the importer has to pay safeguard duty

Highlight: Manufacture - process of cutting of waste plastic container - Such plastic containers before and after cutting are nothing but waste / scrap - Not a manufacturing activity as no new product emerges.

News: NITI Aayog and Govt. of Assam organizes workshop on health sector reforms in Guwahati; launches SATH- Sustainable Action for Transforming Human Capital

Notification: Seeks to amend notification no. 5/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding restriction of refund on corduroy fabrics

Notification: Seeks to amend notification no. 2/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst exemptions

Forum: GSTR 3B Rectification

Notification: seeks to exempt Skimmed milk powder, or concentrated milk

Notification: Seeks to amend notification no. 2/2017- integrated tax(rate) dated 28.06.2017 to give effect to GST council decisions regarding GST exemptions.

Notification: Seeks to amend notification no. 1/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates

Notification: Seeks to amend notification no. 1/2017- integrated tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates.

News: Notification Issued For GST Actionable Claim On Branded Food Products

Highlight: Classification printed computer stationary/manifold Business Forms - to be classified under Chapter Heading 4820.00 or under Chapter Heading 4901.90 - items like A4 sheets, advertisement and job card to be classified under Chapter 49

Article: RCM Applicability to persons not liable to get registered us 23(1)

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

News: GST Refund - Blockage of Working Capital of Exporters - earlier also there was a normal blockage of funds for a period of 5-6 months at least

News: Clarification about Transition Credit - ₹ 1.27 lakh crore of credit of Central Excise and Service Tax was lying as closing balance as on 30th June, 2017 - claim of credit of ₹ 65,000 crore is not unexpected

Article: 20 Things You must know about E Way Bills in GST Law

Article: MISTAKES IN DRAFTING

Highlight: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg. - Circular

Highlight: The definition of "subsidiary company" or "subsidiary" u/s 2(87) of the Companies Act, 2013 shall come into force w.e.f. 20-9-2017

Highlight: Central Government notified the All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017 - Notification

Notification: All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017

Circular: Investment by Foreign Portfolio Investors in Corporate Debt Securities Review

Notification: Exemptions on supply of services under UTGST Act

Notification: Rates for supply of services under UTGST Act

Notification: Exemptions on supply of services under IGST Act

Notification: Rates for supply of services under IGST Act

Notification: List of Exempted supply of services under the CGST Act

Notification: Rates for supply of services under CGST Act

Highlight: Acceptance of deposits by companies from its members - conditions relaxed in case of Specified IFSC Public company and a private company - Rule 3 amended

Notification: Rate of exchange of conversion of the foreign currency with effect from 8th September, 2017

News: Tax Payers Advised To Confirm Identities Of Income Tax Search Authorities

Notification: Amendment in Appendix 3 (SCOMET items) to Schedule- 2 of ITC (HS) Classification of Export and Import Items 2012

Notification: The Customs and Central Excise Duties Drawback Rules, 2017

Circular: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg.



|| 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