Rival submissions of the parties have been considered carefully in the light of the materials and the case laws referred to. The question for our consideration is whether the assessee is entitled to deduction in respect of payment made by the assessee to its parent company by way of reimbursement of expenses incurred by the. parent company in connection with the activities carried on by the assessee.
(ii) where proper enquiries have been conducted by the Assessing Officer and he has followed the principles of natural justice, the order passed by him cannot be said to be erroneous and prejudicial to the interests of revenue simply because the ld. Commissioner does not agree with him and he is of the view that addition of a higher amount should have been made;
13.5 That in the case of running contracts, no income, profits or gains can in fact be computed unless the contract is completed and if the contract is completed in a period of more than a year, the crucial time for calculating the income, profits and gains arrives only when the entire contract is completed in other words, argument was that the only method by which the gains or profits of the assessee could be determined was to wait until
“50C Special provision for full value of consideration in certain cases – (1) Where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed by any authority of a State Government (hereinafter in this section referred to as the `Stamp Valuation authority’ for the purpose of payment of stamp duty in respect of such transfer
15. As a general proposition, it can be said that the payment for impairment of income earning apparatus, sterilization of a source of income would generally fall in the category of capital receipts. Compensation received for undertaking restrictive covenants of not competing with the business also generally fall in the category of capital receipts. The exception being a case, where such covenants are normal incident of carrying on business
14. The assessee has also taken a plea that the assessee did not deduct the tax at source on the interest liability credited to L T Ltd. as per the legal advice given by M/s. C.C. Chokshi Co. This explanation of the assessee has been rejected by the C1T(A) by saying that this submission of the assessee that no TDS was deducted by the assessee under a legal advice of M/s. C.C. Chokshi Co., lacks merit because this advice is
16. On the issue of applicability of section 28(iv) of the Act, we are however of the view that the same arises for consideration on the grounds raised in cross objection and accordingly, we proceed to adjudicate the same. We are of the view that provisions of section 28(iv) would not be attracted to a case of increase in capital of partners of a firm pursuant to revaluation of the assets of the firm. Under section 28 of the Act
9. We have considered the rival submissions and also perused the relevant material on record. It is observed that a similar issue was involved in assessee’s own case for the earlier years i.e. AY 1991-92, 92-93 & 93-94 and the Tribunal vide its consolidated order dated 12.6.1998 has decided the same in favour of the assessee for the said years following the decision of Special Bench of ITAT in the case of P.A.V.L. Kulandayan Chettiar
Where in any financial year the assessee has made investments or is found to be the owner of any bullion, jewellery or other valuable article, and the Assessing Officer finds that the amount expended on making such investments or in acquiring such bullion, jewellery or other valuable article exceeds the amount recorded
3. We have considered the facts of the case and rival submissions. We find that evidence exists on record that M/s Ronex International was habitually importing materials from Kaks. It is also a fact that this concern placed an order with the assessee for import of brass and plastic zippers as seen from pages 35 and 36 of the paper book. The Kaks was earlier carrying on the business of export of zippers,
