S. 14A: Disallowance regarding expense – Exempt money – Onus towards funds to show one disallowance try incorrect – As opposed to examining the account disallowance is not justified [R.8D]

Court held the onus with the revenue to prove you to definitely disallowance try erroneous and you will instead of exploring the membership disallowance isn’t rationalized (AY.2007-08, 2008-09)

S. 14A : Disallowance away from cost – Excused money – Improvement out of disallowance is held as not valid [R.8D]

Dismissing the brand new beauty of the funds the brand new Courtroom held that Assessing Manager got accepted that assessee had not borrowed financing. The brand new assessee had subtracted specific proportionate expense, which the Determining Manager hadn’t disbelieved otherwise debated. Quantity of funding, brand new assessee is actually thought to have obtained fees-free functions off finance companies or other loan providers having exactly who they had spent. This new Tribunal had precisely deleted this new disallowance off Rs. crores around area 14A of Act in accordance with signal 8D of one’s Income-taxation Regulations.

Dismissing new attractiveness of the brand new money the newest Courtroom stored one that given that no exempt earnings had accrued into the assessee the provisions of section 14A did not incorporate

Allowing the newest desire the new Legal held whenever there’s absolutely no dividend earnings received, disallowance can not be made. (AY. 2014-15)

S. 28(iv) : Business earnings – Property value any better or perquisites – Converted into currency or perhaps not – Amalgamation –More than web believe over-value out-of enterprises absorbed – Not assessable given that earnings. [S. 4]

Dismissing brand new appeal of brand new revenue new Court stored that specifications regarding area twenty-eight(iv) of Operate make it clear your amount mirrored when you look at the the bill sheet of assessee in direct supplies and excess can’t be managed since the an advantage or perquisite due to company otherwise get it done away from industry. The difference when you look at the amount post amalgamation are the fresh amalgamation put aside and you may it can’t feel mentioned that it was regarding regular deal of the business being funding in nature, and that emerged on account of amalgamation away from four organizations, it cannot end up being managed just like the falling around part twenty eight(iv). Observed CIT v. Stads Ltd. (2015) 373 ITR 313 (Mad) (HC).(AY.2006-07)

S. 32: Decline – Property received in return away from extinguishment away from tenancy rights – Depreciation deductible – Non – Participate fee – Decline allowable on the idea of consistency.

The issue needed to be readjudicated because of the Determining Manager, whereby objective, the new Determining Manager must evaluate brand new arrangement old registered to your between the assessee and SIPCOT rather than go only of the the latest nomenclature

Dismissing brand new beauty of brand new money the fresh new Judge held you to decline try deductible according away from assets received reciprocally out-of relinquishment away from tenancy legal rights an additional property. Judge in addition to kept that depreciation into the non-vie charges are stored is allowable. Then followed CIT v. Areva T & D India Ltd. (2012) 26 taxmann 266 (Mad) (HC). (AY.2006-07)

S. thirty two : Decline – Carry forward and set off – Unabsorbed decline towards step 1-4-2002 is sent submit and put out of rather than bringing to your membership long time of such carry-forward. [S.32 (2)]

Dismissing the brand new attractiveness of the newest funds the Courtroom held that unabsorbed depreciation concerning the research season 1997-98 in order to 2000-01 are qualified to receive go off facing money to the review year 2005-06. Round No. 14 regarding 2001 dated -08)

S. 32: Decline – Strengthening – Road – Entitle to decline at 10% – Decline to the assets kept for the book – Relies on regards to rent – Matter remanded. [S. thirty two (1)(ii)]

Tribunal is rationalized during the enabling the fresh depreciation within ten% inside the roads. Courtroom as well as held that the residential property on which the studio got started produced by the latest assessee, was owned by this new SIPCOT therefore the innovation contains providing courses within the They Park, organization from a multi-top car park, etc. According to the arrangement, the fresh assessee needed to write these types of establishment and keep them and you can that point is actually stated becoming 99 age, that’s virtually continuous. For this reason, a much deeper study of brand new factual question is actually warranted. (AY. 2007-08 in order to 2010-11, 2012-thirteen and 2013-14)