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Search Results Judgments > Phrase:INCOME TAX ACT 1961 Section 35D

Jun 20 2012

Commissioner of Income Tax Vs. Ms.Ashok Leyland Ltd.

  • Decided on : 20-Jun-2012

Court : Chennai

... for deduction under Section 35D of the Income Tax Act. The Commissioner of Income Tax (Appeals) also agreed with the assessee that it was entitled to deduction on the expansion undertaken by it. Aggrieved by this, the Revenue went on appeal before the Tribunal.7. As far as the eligibility of the assessee for claiming deduction under Section 35D of the Income Tax Act was concerned ... provisions of Section 35D of the Income Tax Act. On the question of the assessee's entitlement for amortisation under Section 35-D, the Tribunal held that as the expenditure was for extension of the industrial undertaking, the same qualified for deduction in terms of Section 35D. However, on the aspect of expenditure to be considered under Section 35D, the Tribunal referred to Section 35D(2) ... of production with extension of industrial undertaking under Section 35D of the Income Tax Act?2.Whether on the facts and circumstances of the case, the Tribunal was right in holding that the expenses related to the 'Euro issue' by the assessee were entitled to be amortised under Section 35D of the Income Tax Act?2. The assessee is also on appeal ... claim is for deduction of the entire amount under Section 35D, whereas the Department's claim is that the assessee is not entitled to deduction of the entire expenditure under Section 35D, since the assessee did not qualify itself to be considered as an eligible undertaking under Section 35D of the Income Tax Act.11. Learned counsel appearing for the assessee pointed ...

Jun 20 2002

Deputy Commissioner Of Vs. A.T.V. Projects India Ltd.

  • Decided on : 20-Jun-2002

Court : Income Tax Appellate Tribunal (ITAT) - Mumbai

... , printing and advertisement of the prospectus." 7. He submitted that specific provisions of the Income-tax Act shall override the general provisions/residuary provisions. In the instant case, the expenditure being allowable under Section 35D of the Act, the same cannot be considered/allowed under Section 37(1) of the Income-tax Act, 1961.8. On the other hand, the learned counsel for the assessee submitted that the ... the Assessing Officer in the assessment order was based, treating the said expenses as Preliminary expenses and restricted the deduction 1/10th of Rs. 59.21 lakhs under Sections 35D of the Income-tax Act, 1961 and the learned CIT(A) failed to take into account the decision of the Bombay High Court in the case of Bombay Burmah Trading Corporation 145 ITR 793 ... outside the purview of Section 35D is allowable under Section 37(1) of the Act in the light of the decision of the Apex Court cited supra. If the company incurs expenditure on issue of debentures, when it is already in business, it is not covered either under Section 35D(1)(i) or (ii) of the Income-tax Act, because what is contemplated under Section 35D is an ... the insertion of Section 35D, under Section 37(1) of the Act. Thus, it can be seen that the aforecited cases are distinguishable on facts.16. Upon careful consideration of the matter, we arc of the view that the assessee is entitled to amortisation of 1/10th of the expenditure under Section 35D read with Section 35(2)(c)(iv) of the Income-tax Act to the ...

Mar 24 2006

Ashima Syntex Ltd. Vs. Assistant Commissioner Of

  • Decided on : 24-Mar-2006

Court : Income Tax Appellate Tribunal (ITAT) - Ahmedabad

Reported in : (2006)100ITD247(Ahd.)

... provision of the Income-tax Act. Referring to the observation of the High Court "but how a deduction which is allowable otherwise as revenue expenses can be denied after the insertion of Section 35D, the learned Counsel failed to explain.", the Tribunal observed that the Circular has nowhere stated that expenditure allowable under Section 35D should be considered under Section 37(1) of the Act. On ... the case of India Cements Ltd, v. CIT was held not applicable. In appeal before the Tribunal, the Tribunal has taken the view that even after insertion of Section 35D in the Act of 1961, the expenses on the issue of debentures cannot be disallowed as the decision of the Supreme Court in the case of India Cements Ltd. (supra) still ... of the Income-tax Act. Referring to the observation of the High Court "but how a deduction which is allowable otherwise as revenue expenses can be denied after the insertion of Section 35D, the learned Counsel failed to explain", the Tribunal observed that the Circular has nowhere stated that expenditure allowable under Section 35D should be considered under Section 37(1) of the Act. On ... Section 35D. Referring to the Circular of the Board and the decision of the Supreme Court in the case of India Cements Ltd. (supra), the Tribunal held that if the company incurs expenditure on issue of debentures, when it is already in business, it is not covered either under Section 35D(1)(i) or (ii) of the Income-tax Act because what is contemplated under Section 35D ...

Feb 24 2006

Joint Commissioner Of Vs. S.I. Property Development Ltd.

  • Decided on : 24-Feb-2006

Court : Income Tax Appellate Tribunal (ITAT) - Madras

Reported in : (2006)101ITD179(Chennai)

... Section 35D of Income-tax Act can be disallowed in a proceeding under Section 154, by making a rectification in the intimation issued under Section 143(1)(a) when the issue is debatable in nature ? 2. I have heard the rival submissions. Assessee claimed expenditure under Section 35D of the Income-tax Act, 1961. Assessing Officer while processing the return under Section ... Income-tax Act can be disallowed in a proceeding under Section 154, by making a rectification in the intimation issued under Section 143(1)(a) when the issue is debatable in nature ? 2. I have heard the rival submissions. Assessee claimed expenditure under Section 35D of the Income-tax Act, 1961. Assessing Officer while processing the return under Section 143(1)(a) allowed the claim.Thereafter he resorted to the provisions of Section ... Section 35D of Income-tax Act can be disallowed in a proceeding under Section 154, by making a rectification in the intimation issued under Section 143(1)(a) when the issue is debatable in nature? (2) Whether, in the facts and circumstances of the case, when the claim of the assessee under Section 35D ...

Nov 04 1985

Commissioner of Income-tax Vs. Shree Synthetics Limited

  • Decided on : 04-Nov-1985

Court : Madhya Pradesh

Reported in : [1986]162ITR819(MP)

... out of the expenditure of Rs. 14,35,224 claimed by the assessee under Section 35D(1) of the Income-tax Act, 1961 ? (3) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that for the purpose of relief under Section 80J of the Income-tax Act, 1961, borrowed capital should also be taken into account in order to arrive ... 6,03,410.7. Against the decision of the Income-tax Officer, the assessee went up in appeal and before the Appellate Assistant Commissioner, it was contended that all the above items of expenses were clearly covered by Sub-clause (iv) of Clause (c) of Sub-section (2) of Section 35D of the Income-tax Act, 1961, and hence the Income-tax Officer was not justified in disallowing the same. ... not hit by the provisions of Section 37(2B) of the Income-tax Act, 1961 ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in deleting the disallowance of Rs. 6,03,410 out of the expenditure of Rs. 14,35,224 claimed by the assessee under Section 35D(1) of the Income-tax Act, 1961 ? (3) Whether, on the facts ... of relief under Section 80J of the Income-tax Act, 1961, borrowed capital should also be taken into account in order to arrive at the capital employed in the industrial undertaking ? ' 2. So far question No. (3) is concerned, learned counsel for the parties submitted that in view of the decision of the Supreme Court relating to Section 80J of the Income-tax Act, 1961, in Lohia Machines ...

Dec 16 2004

Bank Of Baroda Vs. Joint Cit

  • Decided on : 16-Dec-2004

Court : Income Tax Appellate Tribunal (ITAT) - Mumbai

Reported in : (2005)2SOT804(Mum.)

... to deal with the issue of industrial undertaking. There is no definition of the term 'industrial undertaking' in the Income Tax Act, 1961, but, it is defined under the Wealth Tax Act, 1957. Explanation to section 5(1)(xxxi) of the Wealth Tax Act defined the term as an undertaking engaged in the business of generation or distribution or electricity or any other ... sections of the Income Tax Act or even provisions contained in other Direct Taxes Act like Wealth Tax Act. The assessee bank is engaged in providing financial services and in our view, it would be too far fetched to accept that the assessee bank is engaged in running or setting up an industrial undertaking. Considering the entire facts and circumstances, we hold that deduction under section 35D ... Income Tax Act, the meaning attributed to such term in various other sections of the Income Tax Act must be adopted and there is no need to travel to the meaning given by the learned authors of the Legal & Commercial Dictionary.We have given a careful consideration to the rival submissions and have gone through the facts. The relevant provisions of section 35D may be reproduced below: "35D ... to above.The next issue pertains to disallowance of assessee's claim for deduction of Rs. 2,99,90,000 under section 35D of the Income Tax Act.The relevant facts are that the assessee claimed aforesaid deduction under section 35D being 1096 of share issue expenses of Rs. 29.99 crores. The assessing officer examined this issue and pointed out ...

Jun 04 2001

Reliance Industrial Infrastructure Ltd. Vs. Jt. CIT

  • Decided on : 04-Jun-2001

Court : Mumbai

Reported in : (2002)75TTJ(Mumbai)606

... section 35D of the Income Tax Act, 1961 is not applicable, the language of sub-section 2(c)(iv) of section 35D is wide in nature and would include the deductibility of fees paid by the assessee company to the Registrar of Companies for enhancing the capital is allowable under section 35D of the Income Tax Act, 1961 ... Income Tax Act in this. behalf. The basis of charge of income-tax is laid down by the provisions of section 4 of Income Tax Act, 1961, to be the total income of the previous year of every person. Section 5 of the Act enumerates scope of total income and section 2(46) lays down that total income is income computed in the manner laid down in the Income Tax Act. Section 2(31) defines 'person' and section 3 defines 'Previous year'. Section ... income-tax is laid down by the provisions of section 4 of Income Tax Act, 1961, to be the total income of the previous year of every person. Section 5 of the Act enumerates scope of total income and section 2(46) lays down that total income is income computed in the manner laid down in the Income Tax Act. Section 2(31) defines 'person' and section 3 defines 'Previous year'. Section 4 makes it clear that income-tax ...

Jun 19 2000

Commissioner of Income-tax Vs. Mahindra Ugine and Steel Co. Ltd.

  • Decided on : 19-Jun-2000

Court : Mumbai

Reported in : (2001)169CTR(Bom)191; [2001]250ITR696(Bom)

... Section 37 of the Income-tax Act, even after the enactment of Section 35D of the Income-tax Act ?'5. Mr. Desai, learned senior counsel for the Department, contended that in this case, the judgment of the Supreme Court in India Cements Ltd. v. CIT : [1966]60ITR52(SC) , has no application after the introduction of Section 35D of the Income-tax Act. He contended that the Tribunal erred in coming to the conclusion that Section 35D ... under Section 35D of the Income-tax Act ?'4. Question No. (ii), quoted above, has not been framed properly. It needs to be refrained. The refrained question is as follows :'Whether the stamp duty paid on debenture issue continues to be an item of deduction under Section 37 of the Income-tax Act, even after the enactment of Section 35D of the Income-tax Act ?'5. Mr. ... has no application after the introduction of Section 35D of the Income-tax Act. He contended that the Tribunal erred in coming to the conclusion that Section 35D would only apply in respect of the expenditure which is otherwise not allowable under the Act. He contended that the Tribunal erred in coming to the conclusion that Section 35D would apply only in respect of ... disallowance under Section 37(3B) of the Income-tax Act ?'8. In the present case, the conveyance allowance was paid to employees who were owning two wheelers or who were commuting by train or bus. It was not paid to employees owning cars. However, learned counsel for the Department placed reliance on the Explanation to Section 37( ...

Aug 24 2009

Commissioner of Income Tax Delhi-IV Vs. Escorts Finance Limited

  • Decided on : 24-Aug-2009

Court : Delhi

Reported in : (2009)226CTR(Del)105; [2009]183TAXMAN453(Delhi)

... by the Assessing Officer in exercise of his powers contained in Section 271(1)(c) of the Income-Tax Act (hereinafter referred to as the 'the Act' for short). The penalty proceedings came to be initiated by the Assessing Officer under the following circumstances:2. The respondent assessee filed the income tax return declaring income at Rs. 1,21,03,280/- on 30.11.1996. During ... Section 35D of the Act. It would be important to note that assessee has nowhere pleaded that return was filed claiming benefit of Section 35D of the Act on the basis of the said opinion. What was stated was that in the prospectus it was mentioned that as per the opinion given by the Chartered Accountants, the company would be entitled for relief under Section 35D of the Act ... the decision of the Income-Tax Appellate Tribunal (hereinafter referred to as 'the Tribunal' for short) which has upheld the decision of the CIT (A) deleting the penalty of Rs. 13,18,151/- imposed by the Assessing Officer in exercise of his powers contained in Section 271(1)(c) of the Income-Tax Act (hereinafter referred to as the 'the Act' for short). The ... Act' for short). The penalty proceedings came to be initiated by the Assessing Officer under the following circumstances:2. The respondent assessee filed the income tax return declaring income at Rs. 1,21,03,280/- on 30.11.1996. During the assessment proceedings, the Assessing Officer noticed that the assessee had claimed deduction of Rs. 21,02,228/- under Section 35D of the Act ...

Oct 16 1992

Madras Fertilizers Ltd. Vs. Commissioner of Income-tax

  • Decided on : 16-Oct-1992

Court : Chennai

Reported in : [1994]209ITR174(Mad)

... section 256(1) of the Income-tax Act, 1961, both at the instance of the assessee as well as the Department, the Tribunal referred the following questions for our opinion : The questions referred in T. C. 166 of 1980 at the instance of the assessee : '(i) In the facts and circumstances of the case, was the Income-tax Appellate Tribunal correct in holding that the relief under section ... of subsidy to farmers and soil test expenses, should be allowed as admissible deduction under section 35D of the Income-tax Act ? (v) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was correct in law in not upholding that order of the Income-tax Officer as such rejecting capitalisation of the pre-production expenses to the extent of Rs ... cannot be a subject of any allowance in that year. The assessee is following the mercantile system of accounting. These expenses cannot be allowed either under section 28 or under section 37 of the Income-tax Act, 1961. Further, it is capital expenditure, and, therefore, it cannot be allowed. 13. On the other hand, learned counsel for the assessee submitted as under : Though ... been set up. Therefore, the expenditure incurred by the assessee-company from June 10, 1964, should be allowed as a deduction in determining its business profits under section 28 of the Income-tax Act, 1961. 19. Yet another decision relied upon by learned counsel for the Department was that in Bhodilal Menghraj and Co. P. Ltd. v. CIT : [1979]119ITR968(Bom) . ...

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