9911796707
|
Home
Issues involved: Appeal against order of Ld. CIT(A) for assessment year 2003-04 regarding levy of penalty u/s 271(1)(c) on pre-payment of sales tax liability and disallowance u/s 80M of the IT Act 1961.
Pre-payment of sales tax liability issue: The Tribunal noted that the addition made under section 41(1) for pre-payment of taxes was deleted in quantum proceedings, citing the Special Bench decision in the case of Sulzer India Ltd Vs JCIT. The Tribunal upheld the assessee's grievance based on the Special Bench decision, stating that the issue was covered in favor of the assessee. Consequently, the Tribunal allowed Ground No.1 in favor of the assessee. Disallowance u/s 80M issue: The Tribunal addressed the disallowance of deduction u/s 80M on dividend distributed by the assessee. The Assessing Officer disallowed the deduction under section 80M based on section 115-0(5) of the IT Act. However, the Tribunal, following the legal position established by the Hon'ble Bombay High Court, held that the nature of the dividend distributed, not necessarily pertaining to the relevant period, should be considered for allowing the deduction. The Tribunal directed the Assessing Officer to grant relief to the assessee based on this observation, allowing Ground No.4 in favor of the assessee. Conclusion: As the quantum additions were already deleted, the Tribunal found no merit in the revenue's appeal and dismissed the same. The appeal filed by the revenue was ultimately dismissed by the Tribunal.
|
