Back
G. S. KULKARNI, SOMASEKHAR SUNDARESAN
Commissioner of Income Tax, Mumbai – Appellant
Versus
Tata Engineering & Locomotive Company Limited – Respondent
JUDGMENT :
SOMASEKHAR SUNDARESAN, J.
1. With the consent of the parties, Income Tax Appeal No. 2070 of 2009 (relating to Assessment Year 1987-88), which is not on Board but involves the very same question of law involved in Income Tax Appeal No. 321 of 2008 (relating to Assessment Year 1988-89), also is taken on Board for hearing and final disposal.
2. Both Appeals are directed against a common order dated 26th October, 2004 (“Impugned Order”) passed by the Income-tax Appellate Tribunal (“Tribunal”). In fact, the Impugned Order relates to the six assessment years between 1983-84 to 1990-91. Appeals filed by the Appellant-Revenue in respect of the other four assessment years 1983-84, 1984-85, 1986-87 and 1990-91 came to be withdrawn on the premise of the tax effect being below the thresholds stipulated for continuing with litigation.
3. The two Appeals that are being disposed of by this judgement involve identical questions of law. The amount of disallowance of expenditure involved in the two relevant assessment years, marginally varies.
4. By an order dated 16 October, 2008 passed by this Court in Income Tax Appeal No. 321 of 2008 and by an order dated 17 March, 2008, Income Tax Appeal
Payments made for community welfare, linked to business operations, are allowable as deductions under Section 37(1) and do not fall under the disallowance provisions of Section 40A(9).
Genuine business transactions may qualify for exceptions under Section 40A(3); disallowances require sufficient evidence questioning genuineness.
CSR expenditure disallowed under section 37(1) qualifies for section 80G deduction if conditions met; TDS disallowance under sections 40(a)(i)/(ia) requires verification of compliance on actual payme....
Disallowance u/s 40A(2) unsustainable without finding of excessiveness/unreasonableness; salary recharge to same-tax-rate related parties allowable if business purpose proved.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
