2010 (10) TMI 122 - HC - Income Tax

Prior period liability AO disallowed part of the expenditure as belongs to earlier year Held that - Both the authorities have recorded the findings that the payment of Rs.60,00,000/- was not relating to the earlier years and payment of 8% royalty is not excessive. The finding of the Tribunal is finding of fact. No substantial question of law arises from the order of the Tribunal

Summary

The High Court of Allahabad upheld the decision of the Tribunal regarding the disallowed expenditure of Rs.60,00,000 and 8% royalty paid to the Managing Director. The Commissioner of Income Tax (Appeal) found no evidence that the payment was for earlier years and deemed the 8% royalty as not excessive. The Tribunal's findings were considered factual, and no substantial question of law arose from the case. The appeal was dismissed.