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Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2024 (3) TMI AT This

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2024 (3) TMI 1115 - AT - Income Tax


  1. 2015 (8) TMI 493 - SC
  2. 2013 (10) TMI 324 - SC
  3. 2012 (10) TMI 150 - SC
  4. 2010 (1) TMI 11 - SC
  5. 2009 (5) TMI 16 - SC
  6. 2009 (4) TMI 4 - SC
  7. 2008 (9) TMI 14 - SC
  8. 2004 (2) TMI 4 - SC
  9. 2000 (8) TMI 4 - SC
  10. 1999 (9) TMI 4 - SC
  11. 1999 (8) TMI 920 - SC
  12. 1999 (1) TMI 34 - SC
  13. 1997 (9) TMI 3 - SC
  14. 1991 (11) TMI 2 - SC
  15. 1968 (8) TMI 53 - SC
  16. 1959 (5) TMI 3 - SC
  17. 1959 (5) TMI 5 - SC
  18. 2018 (10) TMI 1611 - SCH
  19. 2017 (12) TMI 477 - SCH
  20. 2009 (11) TMI 1000 - SCH
  21. 2018 (2) TMI 1788 - HC
  22. 2017 (12) TMI 634 - HC
  23. 2017 (12) TMI 590 - HC
  24. 2017 (12) TMI 536 - HC
  25. 2017 (12) TMI 474 - HC
  26. 2017 (12) TMI 414 - HC
  27. 2017 (12) TMI 1621 - HC
  28. 2017 (7) TMI 501 - HC
  29. 2015 (12) TMI 1130 - HC
  30. 2016 (5) TMI 203 - HC
  31. 2015 (3) TMI 1305 - HC
  32. 2014 (2) TMI 378 - HC
  33. 2012 (12) TMI 671 - HC
  34. 2012 (9) TMI 445 - HC
  35. 2012 (7) TMI 798 - HC
  36. 2012 (3) TMI 626 - HC
  37. 2011 (11) TMI 443 - HC
  38. 2010 (11) TMI 776 - HC
  39. 2010 (11) TMI 993 - HC
  40. 2010 (10) TMI 638 - HC
  41. 2009 (1) TMI 26 - HC
  42. 2008 (11) TMI 698 - HC
  43. 2007 (4) TMI 180 - HC
  44. 2007 (2) TMI 192 - HC
  45. 2007 (2) TMI 200 - HC
  46. 2007 (1) TMI 102 - HC
  47. 2007 (1) TMI 86 - HC
  48. 2006 (7) TMI 202 - HC
  49. 2006 (3) TMI 131 - HC
  50. 2006 (1) TMI 57 - HC
  51. 2005 (5) TMI 54 - HC
  52. 2004 (1) TMI 46 - HC
  53. 2003 (4) TMI 36 - HC
  54. 2002 (10) TMI 61 - HC
  55. 2002 (9) TMI 96 - HC
  56. 2002 (4) TMI 37 - HC
  57. 2000 (5) TMI 34 - HC
  58. 2000 (4) TMI 26 - HC
  59. 1999 (4) TMI 50 - HC
  60. 1993 (9) TMI 52 - HC
  61. 1991 (4) TMI 53 - HC
  62. 1982 (6) TMI 50 - HC
  63. 1969 (3) TMI 17 - HC
  64. 2018 (10) TMI 1398 - AT
  65. 2017 (11) TMI 1632 - AT
  66. 2016 (5) TMI 1469 - AT
  67. 2015 (9) TMI 20 - AT
  68. 2013 (8) TMI 594 - AT
  69. 2012 (12) TMI 289 - AT
  70. 2012 (7) TMI 525 - AT
  71. 2011 (8) TMI 1147 - AT
  72. 2009 (5) TMI 1013 - AT
  73. 2007 (7) TMI 334 - AT
  74. 2007 (5) TMI 614 - AT
  75. 2006 (5) TMI 151 - AT
  76. 2005 (7) TMI 303 - AT
  77. 2005 (6) TMI 204 - AT
  78. 1994 (4) TMI 90 - AT
  79. 1988 (12) TMI 138 - AT
  80. 1983 (3) TMI 110 - AT
Issues Involved:
1. Transfer Pricing Adjustment
2. Deduction u/s 43B
3. Disallowance of Excise Duty and Customs Duty
4. Addition due to Excess Consumption of Raw Materials
5. Disallowance u/s 14A
6. Deduction u/s 35DDA
7. Disallowance u/s 40(a)(ia)
8. Sales Tax Subsidy as Capital Receipt
9. Set off of Brought Forward Depreciation
10. Under Valuation of Stock
11. Long Term Capital Loss as Speculative Loss
12. Disallowance of Club Membership Expenses
13. Levy of Interest u/s 234B

Summary:

1. Transfer Pricing Adjustment:
The Tribunal held that TP adjustment cannot be made with reference to the entire turnover of the assessee and should be restricted to the value of international transactions. The Tribunal directed the Assessing Officer/TPO to delete the impugned adjustment as the comparables selected were not functionally similar to the assessee.

2. Deduction u/s 43B:
The Tribunal allowed the deduction of Rs. 1,99,79,84,644/- claimed u/s 43B, following consistent decisions in earlier years and the High Court's affirmation. Similarly, the Tribunal allowed the deduction of Rs. 1,26,13,69,894/- representing the amount of Excise Duty actually paid on purchase inputs.

3. Disallowance of Excise Duty and Customs Duty:
The Tribunal directed the Assessing Officer to allow the deduction of Rs. 36,16,02,097/- being customs duty included in the closing inventory, and Rs. 15,87,10,947/- and Rs. 8,25,09,467/- representing customs duty and CVD paid in respect of goods in transit/under inspection. The Tribunal also directed to allow the deduction of Rs. 2,23,69,355/- being Sales Tax paid in respect of components held in closing stock.

4. Addition due to Excess Consumption of Raw Materials:
The Tribunal directed the Assessing Officer to delete the addition of Rs. 9.20 crores in respect of alleged excess consumption of raw materials and components, following consistent decisions in earlier years.

5. Disallowance u/s 14A:
The Tribunal directed the Assessing Officer to delete the disallowance u/s 14A, following the High Court's decision that the onus is on the Revenue to establish a proximate nexus of expenses with earning of exempt income.

6. Deduction u/s 35DDA:
The Tribunal allowed the deduction of Rs. 14,72,09,512/- u/s 35DDA, following consistent decisions in earlier years and the High Court's affirmation.

7. Disallowance u/s 40(a)(ia):
The Tribunal directed the Assessing Officer to delete the disallowance of payments made outside India u/s 40(a)(ia), following consistent decisions in earlier years and the High Court's affirmation.

8. Sales Tax Subsidy as Capital Receipt:
The Tribunal directed the Assessing Officer to accept the sales tax subsidy as a capital receipt, following the High Court's decision in the assessee's favor.

9. Set off of Brought Forward Depreciation:
The Tribunal directed the Assessing Officer to consider the set off of brought forward depreciation as per the amended provisions of section 32(2) of the Act.

10. Under Valuation of Stock:
The Tribunal upheld the CIT(A)'s factual finding that the vehicles returned during the year and remaining unsold were included in the closing stock, dismissing the Revenue's ground.

11. Long Term Capital Loss as Speculative Loss:
The Tribunal dismissed the Revenue's ground, following the decision that the loss on redemption of preference shares cannot be treated as speculative loss.

12. Disallowance of Club Membership Expenses:
The Tribunal dismissed the Revenue's ground, following consistent decisions in earlier years that club membership expenses are allowable as business expenditure.

13. Levy of Interest u/s 234B:
The Tribunal directed the Assessing Officer to charge interest u/s 234B as per the provisions of law.

Conclusion:
Both the assessee's and the Revenue's appeals were allowed in part for statistical purposes. The order was pronounced in the open court on 12.03.2024.

 

 

 

 

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