9911796707
|
Home
Issues Involved:
1. General Nature of Grounds 2. Disallowance of Consultation Fees u/s 40A(12) 3. Disallowance of Soda Ash Project Expenses 4. Disallowance u/s 40A(3) 5. Deduction u/s 80-I for Various Incomes 6. Deduction u/s 80HH 7. Deduction u/s 80-I and 80HH for Specific Incomes 8. Deduction u/s 80-I and 80HH on Bill Discounting Charges 9. Withdrawal of Interest u/s 244 10. Disallowance under Rule 6B 11. Disallowance of Interest 12. Disallowance u/s 40A(2)(b) 13. Deduction u/s 80-I on Certain Incomes 14. Addition on Account of Withdrawal from Investment Deposit Account u/s 32AB(6) Summary: 1. General Nature of Grounds: The ground of general nature raised by the assessee was rejected as it required no separate adjudication. 2. Disallowance of Consultation Fees u/s 40A(12): The assessee's appeal against the disallowance of Rs. 2,95,000/- under section 40A(12) was remanded back to the Assessing Officer to examine the nature of fees paid and re-adjudicate the matter as per the provisions of section 40A(12). 3. Disallowance of Soda Ash Project Expenses: The assessee's claim for deduction of Rs. 7,32,084/- on Soda Ash Project was rejected, following the Tribunal's decision for the assessment year 1991-92, which held that the expenditure should be amortized and deduction u/s 35D would be allowed when the Industrial Undertaking commenced production. 4. Disallowance u/s 40A(3): The ground was not pressed by the assessee and was accordingly rejected. 5. Deduction u/s 80-I for Various Incomes: The Tribunal upheld the CIT(A)'s decision that certain incomes like interest on fixed deposits, interest from Nirma Ltd., transport rent income, interest on deposit with IDBI, and profit on sale of raw material were not entitled to deduction u/s 80-I as they did not have a direct or immediate nexus with the Industrial Undertaking. 6. Deduction u/s 80HH: The Tribunal directed the Assessing Officer to allow deduction u/s 80HH for the year under consideration, following the Tribunal's decision for the assessment years 1990-91 and 1991-92, which allowed the deduction as the assessee had started manufacturing activity during the year. 7. Deduction u/s 80-I and 80HH for Specific Incomes: The assessee did not press the claim for deduction on rent, fixed deposit interest, and other interest. The Tribunal upheld the lower authorities' decision that profit on sale of raw material was not income derived from the Industrial Undertaking. 8. Deduction u/s 80-I and 80HH on Bill Discounting Charges: This ground was considered only if the Revenue's appeal on the addition on account of withdrawal from IDBI Account was upheld. Since the Revenue's appeal was rejected, this ground became infructuous. 9. Withdrawal of Interest u/s 244: The ground was not pressed by the assessee and was accordingly rejected. 10. Disallowance under Rule 6B: The Tribunal upheld the CIT(A)'s decision to delete the disallowance made under Rule 6B, following the Tribunal's decision for the assessment year 1991-92, which held that no advertising element was present as there was no logo on the gift articles. 11. Disallowance of Interest: The Tribunal upheld the CIT(A)'s decision to delete the disallowance of interest, as the withdrawal for payment of income-tax was made out of the income generated during the year and not out of borrowed funds. 12. Disallowance u/s 40A(2)(b): The matter was remanded back to the Assessing Officer to examine whether Nirma Management Services falls within the category of persons specified under section 40A(2)(b) and to re-adjudicate the matter after examining the nature of services rendered and the reasons for the increase in service charges. 13. Deduction u/s 80-I on Certain Incomes: The Tribunal reversed the CIT(A)'s decision allowing deduction u/s 80-I on late payment interest received from debtors, following the decision of the Hon'ble Apex Court in the case of Pandian Chemicals Ltd. However, the Tribunal upheld the CIT(A)'s decision allowing deduction on the sale of Bardana and waste material as they had
|
