Litigation expenses incurred for recovering the sale proceeds from Pakistan were of a capital nature and were not allowable as an expenditure(Para 3)
There is nothing in the sub-rule 40 (1) which stipulates or requires the Income Tax Officer to exercise his discretion to reduce or waive interest payable under Section 215 or 217 only after an assessment is completed.(Para 9)
Sales-tax liability of Rs. 7,00,057/- is an allowable deduction during the year under consideration
Since litigation expenses have been disallowed, cost and litigation charges of Rs. 29,53,197/- are not taxable as revenue receipts
the Tribunal was right in rejecting the revenue’s application for raising the additional ground as that would have amounted to introduction of a new source of income. The decision in National Thermal Power Corporation (Supra) also does not come to the aid of the revenue in this case. A new ground can be permitted in appeal so long as the relevant facts are on record and the ground sought to be raised could not have been raised earlier for good reasons. As noted in National Thermal Power Corporation (Supra), the Tribunal has the discretion to allow or not to allow a new ground to be raised. A new ground may be allowed to be raised only when it arises from the facts which are on record. (Para 18)
IN THE HIGH COURT OF DELHI AT NEW DELHI
Judgment delivered on : 30.07.2008
ITR No.299/1988
M/S DALMIA DAIRY INDUSTRIES LTD …..Appellant
-versus-
COMMISSIONER OF INCOME TAX, (DELHI CENTRAL-I). ….. Respondent
Coram : JUSTICE BADAR DURREZ AHMED and JUSTICE RAJIV SHAKDHER
For the Appellant : Mr. V P Gupta with Mr. Basant Kumar and Mr. Javid Muzaffar Advocates
For the Respondent : Mr. R D Jolly Advocate
ITR No. 300/1988
COMMISSIONER OF INCOME ….. Appellant TAX, (DELHI CENTRAL-I).
-versus-
M/S DALMIA DAIRY INDUSTRIES LTD ….. Respondent
For the Appellant : Mr. R D Jolly Advocate
