9911796707
|
Home
Issues involved: Appeals filed by the assessee and Revenue against the order of the Commissioner of Income-tax (Appeals) for assessment years 2008-09 and 2009-10 u/s 143(3) of the Income Tax Act.
Issue 1 - Disallowance of Interest under section 36(1)(iii) of the Act: - The assessee invested in shares of M/s DSG Papers Private Limited and paid interest on borrowed capital. - Disallowance of interest was made by the Assessing Officer based on the Punjab & Haryana High Court's ruling in CIT Vs. Abhishek Industries. - CIT (Appeals) upheld the addition, following the Tribunal's order in the assessee's case for the previous year. - Tribunal upheld the disallowance based on similar issue in the assessee's case for assessment year 2007-08. Issue 2 - Disallowance under the proviso to section 36(1)(iii) of the Act: - Disallowance of Rs.20,921/- for assessment year 2008-09 and Rs.59,063/- for assessment year 2009-10 under the proviso to section 36(1)(iii) was contested by the assessee. - Tribunal allowed partial relief for assessment year 2008-09 by directing re-computation for a specific period. - Disallowance for assessment year 2009-10 was upheld by the Tribunal. Issue 3 - Disallowance of expenditure on purchase of items: - The Assessing Officer disallowed expenditure on various items as not being in the nature of repair and maintenance but as addition to capital assets. - CIT (Appeals) allowed the claim of the assessee, considering the expenditure to be revenue in nature. - Tribunal upheld the majority of the expenditure as repair and maintenance, but directed depreciation on capital items like pumps and printers. Conclusion: - The appeal for assessment year 2008-09 by the assessee was partly allowed, while for assessment year 2009-10 it was dismissed. - The Revenue's appeal for assessment year 2008-09 was partly allowed. - The Tribunal's order was pronounced on June 28, 2013, addressing all the issues raised by the parties.
|
