The expenditure towards environmental compensation was debated ...

Environmental compensation disallowance deleted; AO couldn't decide without examining PCB order in summary proceedings. (1)

Case Laws Income Tax

July 12, 2024

The expenditure towards environmental compensation was debated as penal or compensatory in nature. The adjustment u/s 143(1)(a) was challenged. It was held that such a question cannot fall within the ambit of Section 143(1), where only arithmetical mistakes and incorrect claim adjustments are to be examined by software during return processing. If the assessment was scrutinized and the Assessing Officer confronted the assessee, the issue could have been decided differently. However, in a Section 143(1) proceeding, such disallowance cannot be made without examining the Pollution Control Board's order directing the payment. Every payment by the assessee would not be penal, therefore, the disallowance was unsustainable. The ground of appeal was allowed, and the disallowance was deleted.

View Source

← Previous Next →

The expenditure towards environmental compensation was debated ...

Environmental compensation disallowance deleted; AO couldn't decide without examining PCB order in summary proceedings. (1)

Case Laws Income Tax

July 12, 2024

You may also like:

IT, Estimation of income without rejecting books of accounts is arbitrary, addition made by AO deleted

Tribunal adjudicated on ad hoc disallowances of expenses debited to P&L, interest paid to banks, salary from Ozone Pharmaceuticals Ltd., deduction u/s 80IB/80IC, and...

Entertainment tax subsidy - capital or revenue receipt - disallowance u/s. 37 - AO made ad hoc disallowance u/s. 37 @ 10% of expenditure. However, the said disallowance...

Disallowance u/s 14A r.w.r. 8D - since AO has mechanically applied the provisions of Rule 8D while making the aforesaid disallowance without establishing any nexus of...

Disallowance of expenses and interest - When the AO required the assessee to furnish the relevant details, it was the assessee who was at fault. - Neither the AO was...

The ITAT held that interest disallowance was not justified as borrowed funds were invested in equity shares, not loans. Disallowance of land acquisition cost was...

Levy of service tax - Notice pay compensation - amounts received or recovered by the employer from its employees for resigning from the service - If the employer decides...

Disallowance u/s 14A - Disallowance made on account of interest expenditure - AO has not made any disallowance on account of interest expenditure u/s 14A of the I.T. Act...

TDS disallowance for professional fees paid to non-residents without TDS deduction was deleted as the payees did not have a fixed base or permanent establishment in...

Various disallowances and additions made by the Assessing Officer (AO) and the Income Tax Appellate Tribunal's (ITAT) decisions on the same. The key points are: 1)...

Disallowance u/s 14A r.w.r. 8D - no proper recording of satisfaction by the AO for rejecting the suomoto disallowance made by the Assessee - The Tribunal found that in...

Disallowance of expenditure incurred under Voluntary Retirement Scheme (VRS) - AO has not examined the details as per the directions of the DRP and has made disallowance...

Disallowance u/s 14A – once the AO has failed to comply the statutory requirement, then he cannot proceed to make the disallowance u/s 14A(1) and the disallowance made...

Disallowance of commission expenses due to lack of evidence regarding services rendered. Valuation of construction work-in-progress issue dismissed as academic....

Disallowance on account of 'mark to market loss' on F&O transaction - additions deleted - AT

Quick Updates: