Case Law Details
The issue involved in the present appeal has now been decided by the Hon’ble Calcutta High Court in the case of CIT v. Virgin Creation in GA No. 3200/2011 dated 23-11-2011 against the Revenue. However, it is noteworthy that the Special Bench of ITAT Mumbai in the case of Bharati Shipyard Ltd. v. DCIT in ITA No.2404/Mum/2009 in order dated 12-09-2011 has taken a view that the amendment is prospective in nature and would apply accordingly. Respectfully following the decision of Hon’ble Calcutta High Court in the case of Virgin Creators (supra) the order of Ld. CIT(A) is not sustainable. Hence, this ground of assessee’s appeal is allowed. The Assessing Officer is directed to delete the dis allowance of Rs.3,69,568/- as made u/s. 40(a)(ia) of the Act.
INCOME TAX APPELLATE TRIBUNAL, AHMEDABAD
ITA No. 2869/Ahd/2011 – Assessment Year: 2005- 06
M/s. Alpha Projects Society P. Ltd V/s. DCIT
Date of Pronouncement 23-03-2012
Please become a Premium member. If you are already a Premium member, login here to access the full content.
