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Commissioner of Income Tax Versus M/s. Tagros Chemicals (India) Limited

2017 (12) TMI 367 - MADRAS HIGH COURT

Payment of registration fee to be equitable to an intangible asset - Held that:- We find that the finding of the Tribunal is not supported by reasons, especially on the factual aspect as to what is the effect of payment of the registration fee for acquiring such a licence. That apart, the assessee's alternate claim that it should be treated as a revenue expenditure has also been negatived by the Assessing Officer. We find that the Assessing Officer, has not given independent reason as to why the .....

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dar, JJ. For Appellant : Mr. M. Swaminathan For Respondent : Mr. M. P. Senthilkumar ORDER ( Judgment of the Court was delivered by T. S. Sivagnanam, J. ) Heard Mr.M.Swaminathan, learned Standing Counsel appearing for the appellant and Mr.M.P.Senthilkumar, learned counsel, accepting notice on behalf of the respondent/assessee. With the consent on either side, the appeal itself is taken up for disposal. 2.The Revenue has filed this appeal against the order passed by the Income Tax Appellate Tribun .....

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l was right in remitting the issue of donation made u/s.35AC back to the file of the Assessing Officer without considering the fact that the assessee has copy of certificate in Form 58A only to the tune of ₹ 1 crore whereas the total claim of the assessee was ₹ 2.50 crores ? (iii) Whether the Tribunal was right in holding that the Registration Fees and other related payments constitute intangible assets and eligible for depreciation within the meaning of business or commercial rights .....

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iny and notice under Section 143(2) was served on the assessee. The assessee claimed deduction for donation of ₹ 2.5 crores to M/s.Mahila Utkarsh Sansthan Trust in Indore, Madhya Pradesh under Section 35AC of the Income Tax Act, 1961. The donations were made on various dates through the assessee's bank account maintained with the State Bank of India and the Kotak Mahindra Bank at Kolkata. The assessee has produced a copy of Form 58A issued by the President of the Trust for an amount of .....

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olice that their registered office is only in Indore and they have no other branches. The assessee was confronted with this information and was called upon to prove that the fund is utilised for the intended purpose. 4.On the above contention, the Assessing Officer completed the assessment by order dated 25.03.2013. Two issues arise for consideration, namely with regard to the donation which has been given by the assessee and the same being denied by the Trust. The second issue being the claim f .....

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was affirmed, however, there is no independent finding rendered by the CIT (A). 5.On further appeal to the Tribunal, on the first issue with regard to the donation, the Tribunal has remanded the matter to the Assessing Officer for fresh consideration by following a decision in the case of M/s.Mangal Tech Park Pvt. Ltd. in I.T.A.No.1439/Mds/2014 and 2084/Mds/2015 for the Assessment Year 2008-09, vide order dated 17.06.2016. With regard to the second aspect pertaining to the payment of registrati .....

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hed by the Tribunal in paragraph 9 of its order while remitting the issue to the Assessing Officer. If, according to the Tribunal, the Assessing Officer has to conduct a similar exercise as that was directed to be conducted in M/s.Mangal Tech Park Pvt. Ltd. (supra), it should have been an open remand, but not a qualified remand. Therefore, we are inclined to interfere with that portion of the direction issued by the Tribunal in paragraph 9 and declare that the first issue shall be remitted back .....

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