Back
G. S. SANDHAWALIA, LAPITA BANERJI
Market Committee, Gohana – Appellant
Versus
Assistant Commissioner of Income Tax, Sonipat – Respondent
JUDGMENT
G.S. Sandhawalia, J.
The present judgment shall dispose of two appeals i.e. ITA No. 244 of 2011 and ITA No. 512 of 2017.
Facts of ITA No.244 of 2011
2. ITA No.244 of 2011 has been filed under section 260A of the Income Tax Act, 1961 (in short 'the Act') against the order passed by the Income Tax Appellate Tribunal, Delhi Bench in ITA No.1831/Del/2010 dated 31.08.2010 (Annexure A/3) wherein the Tribunal has allowed the appeal of the Revenue and set aside the order of the Commissioner, Income Tax wherein the deletion of Rs.2,81,33,700/- was made for the assessment year 2007-08 and restored the order of the Assessing Officer dated 30.11.2009 (Annexure A-I) for the assessment year 2007-08.
3. The reasoning which prevailed with the Tribunal was that it was a payment of loan taken from the Haryana State Agricultural Marketing Board (in short 'the Board') and had been used for spending on repair work of Mandi construction and repairs of various rural roads and development of Mandis and, therefore, the expenses incurred were not out of the own funds but out of borrowed funds. Resultantly, the Tribunal was of the opinion that making repayment of such borrowed funds and claiming deduct
Payments made by the Market Committee for statutory purposes under the Income Tax Act are not loan repayments and should not be disallowed as double deductions.
(1) Taxing Statute – Exemption notification should be strictly construed and given a meaning according to legislative intendment.(2) Service Tax exemption – Eligibility clause in relation to exemptio....
Guidelines for Price Support Scheme – guidelines issued by the Government of India to refuse to comply with its obligation to pay the market fees to the petitioner
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).
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
