Case Law Details
Zeenath Transport Company Vs ACIT (ITAT Bangalore)
The assessee during the year made payment of Rs.10 lakhs and 20 lakhs towards membership fee and legal fund respectively to Federation of Indian Mineral Industries. The federation of Indian Mineral Industries is an association of industries i.e engaged in the business of minerals and is a non profit corporate body registered under the Companies Act 1956 to promote the interest of the mining and mineral processing, metal making and other mineral based industries and to attend to the problems faced by them in lease grants, tenure, production, taxation, trade export labour etc. The Ld.AO restricted the claim to 50% of expenditure incurred on account of legal fees u/s 80G of the Act.
We note that the legal payment incurred by assessee is towards representing case filed of FIMI against which TDS has been deducted as observed by the Ld.CIT(A). It is also an admitted fact that this organization has been formed to safeguard the rights of mine owners and to protect interest of industries, present in this spear of mineral exploration and production. In our opinion the said amount does not qualify to be considered as donation. It is an expenditure incurred to safe-guard assessee’s business interests and has to be considered under the provisions of sec.37(1) of the Act. In our view the decision of coordinate bench of this Tribunal reproduced herein above squarely covers the issue under consideration.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
Present appeals are field by the assessee against orders dated 22/03/2018 passed separately by the Ld.LCIT(A), Gulbarga for assessment year 2012-13 to 2014-15 on following grounds mentioned of appeal.
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