2008 (2) TMI 398 - SCH - Income Tax

Whether the assessee is entitled to deduction of Rs.1, 16, 89, 327/- incurred as Issue Management Expenses - Reading the judgments of the Tribunal and the High Court we find that the assessee has succeeded only on the basis of Rule of Consistency . In our view the High Court should have examined the nature of the said expenses - In our view substantial question of law did arise for determination - Consequently the impugned judgment of the HC is set aside and the matter is remitted to HC

Summary

The Supreme Court allowed the appeal in S.L.P.(C) No.11507/2005, setting aside the High Court's judgment on deduction of 'Issue Management Expenses'. The matter was remitted back to the High Court for fresh consideration. A similar decision was made in C.A.No.3170/2006, with no costs awarded.