2019 (8) TMI 1148 - SCH - Income Tax

Disallowance of the entire business expenditure - whether the assessee company has to necessarily and directly operate the businesses as mentioned in the Memorandum of Association so as to qualify as carrying out business activity or whether making of investment in subsidiaries which in turn are operating in the business as referred in the Memorandum of Association of the appellant company? - HELD THAT - Since the tax effect involved in the matter is less than two crores as stipulated in the latest CBDT Circular dated 8.8.2019 no interference is called for. The special leave petition is dismissed.

Summary

The Supreme Court dismissed the special leave petition as the tax effect was less than two crores, as per the CBDT Circular dated 8.8.2019. Delay was condoned, and pending applications were disposed of.