2018 (2) TMI 351 - HC - Income Tax

Admit on following substantial question of law. On the facts and in the circumstances of the case and in law, the Hon ble Income Tax Appellate Tribunal was not justified in failing to appreciate that the disallowance u/s 40(a)(ia) cannot be regarded as increase in profit of the assessee s business on which deduction u/s.80IC would be allowable, as the amount has already been expended.

Summary

The Bombay High Court admitted an appeal challenging a Tribunal's reliance on a specific judgment regarding the disallowance of a certain amount under section 40(a)(ia) of the Income Tax Act. The substantial question of law admitted for consideration was related to the disallowance not being considered as an increase in profit for the purpose of claiming deduction under section 80IC.