9911796707
TMI Blog1980 (2) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... )(iii) was not correctly computed, the assessee was reopened under s. 147(b) of the IT Act, 1961. The ITO passed the re-assessment order on 30th March, 1974 adding the following: "(i) Disallowance in respect of Soda Ash Project. 1,45,948 (ii) Further deemed income under s. 41(1) 16,99,967 (iii) Further disallowance under s. 40 (c)(iii) 38,185 3. On appeal, the AAC overruled the assessee's contention that the re-assessment based upon the Audit report was invalid, on the basis of the decision of the Supreme Court in the case of R.K. Malhotra, ITO vs. Kasurbai Lalbhai (1). The AAC deleted the addition of Rs. 1,45,948 for the reasons mentioned paragraph 3 of his order. He also deleted the ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e made applicable to the assessee before us for the above asst. yr. "Ms. Buckingham and Carnatic Co. Ltd. Madras-Company/GT. No. 11-B/68-69 69-70. Total Income: Rs. 6,71,410 and less Rs. 4,13,070 Date of assessment 21st Jan.,1972 and 31st Jan.,1972. In computing the business income of the company for the asst. yr.1968-69 and 1969-70 the value of perquisites and amenities provided by the company to its directors/employees to the extent it exceeds one fifth of their salary, has been disallowed and added to the income returned, as required under s. 40(a)(v) of the IT Act. It is seen from the statement prepared by the assessee and accepted by the ITO for this purpose that evaluating the perquisites/amenities by way of provision of accom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufacture of soda ash, the 'Project Expenses' mentioned above would be in the nature of preliminary expenses no admissible for deduction in computing the income of the company. The correctness of the deduction allowed for the two sums as above, requires to be examined. If the two assessments are revised to disallow the preliminary expenses there will be further tax due from the company to the extent of Rs.1,05,460" The ld. Departmental Representative submitted that the above objections raised by the Revenue Audit do not relate to any matter of law but only related to a matter of fact and he referred us to the various figures furnished by the assessee with reference to the points considered in the re-assessment. He, therefore, urged th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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