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Search Results Judgments > Act: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 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( ...

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 ...

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 ...

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 ...

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 ...

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 ...

Oct 17 1989

Commissioner of Income-tax Vs. Aditya Mills

  • Decided on : 17-Oct-1989

Court : Rajasthan

Reported in : (1990)86CTR(Raj)60; [1990]181ITR990(Raj)

... S.C. Agrawal, J.1. This reference has been made at the instance of the Revenue under Section 156 of the Income-tax Act, 1961 (hereinafter referred to as 'the Act'), wherein the following question has been referred for consideration of this court:'Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that ... deduction of the said expenses as a revenue expenditure. The Income-tax Officer disallowed the said claim of the assessee and allowed only l/10th of the said expenditure in view of Section 35D(1)(ii) of the Act. The Commissioner of Income-tax (Appeals) held that the expenditure was not covered by Section 35D(1)(ii) of the Act and no part of this expenditure could be allowed as ... /10th of the said expenditure in view of Section 35D(1)(ii) of the Act. The Commissioner of Income-tax (Appeals) held that the expenditure was not covered by Section 35D(1)(ii) of the Act and no part of this expenditure could be allowed as deduction. He disallowed the entire expenditure of Rs. 7,500. On further appeal, the Income-tax Appellate Tribunal allowed the said deduction of expenditure ... resolution so that the articles could be amended to bring them into accord with changes brought about in the law relating to companies is an allowable expenditure under Section 10(2)(xv) of the Act as it is incurred in order that the company should continue to function in accordance with law and is not capital expenditure. Similarly, in CIT v. Elphinstone ...

Mar 07 1996

Agrocargo Transport Ltd. Vs. Commissioner of Income-tax

  • Decided on : 07-Mar-1996

Court : Chennai

Reported in : (1997)143CTR(Mad)325; [1997]224ITR90(Mad)

... section 35D of the Act. However, we consider that the question as framed and referred to us would not reflect the real issue arising in this tax case. Therefore, we would reframe the question as under : 'Whether, on the facts and circumstances of the case, the Tribunal was correct in holding that the assessee is not entitled to amortisation under section 35D(1) of the Income-tax Act, 1961 ... of the assessee, the Tribunal referred the following question for the opinion of this court under section 256(1) of the Income-tax Act, 1961 : 'Whether, on the facts and in the circumstances of the case, the expression 'industrial undertaking' and 'industrial unit' according to section 35D includes an undertaking set up for transportation of goods by trucks ?' 2. The assessee is ... of Rs. 72,614 incurred on the above amounting to Rs. 7,261 should be allowed as a deduction under section 35D(1)(ii) of the Act. This was disallowed by the Income-tax Officer in the view that the deduction under section 35D was allowable only in connection with the extension of the industrial undertaking and, therefore, the deduction could not ... Income-tax Officer in the view that the deduction under section 35D was allowable only in connection with the extension of the industrial undertaking and, therefore, the deduction could not be granted to the assessee as no new industrial unit has been set up by the assessee in this year. On appeal, the Appellate Assistant Commissioner confirmed the order passed by the Income-tax ...

Feb 04 2005

Ashok Leyland Ltd. Vs. Asstt. Cit

  • Decided on : 04-Feb-2005

Court : Income Tax Appellate Tribunal (ITAT) - Chennai

Reported in : (2006)6SOT200(Chennai)

... section 37 of the Income Tax Act, 1961. Alternatively, claim was made under section 35D of the Act.The assessing officer held that there was no extension or setting up of new unit. As such the requirement of section 351)(1)(ii) was not satisfied.Shri R. Vijayaraghavan, the learned counsel for the assessee, submitted that the case of the assessee comes within the ken of section 35D ... Income Tax Act, 1961. Alternatively, claim was made under section 35D of the Act.The assessing officer held that there was no extension or setting up of new unit. As such the requirement of section 351)(1)(ii) was not satisfied.Shri R. Vijayaraghavan, the learned counsel for the assessee, submitted that the case of the assessee comes within the ken of section 35D(1)(ii) of the Act ... section 35D of the Income Tax Act, 1961, have been spelt out in that section. The power reserved to include other items of expenditure has not been exercised by the authority who had been conferred with the power. The Tribunal cannot proceed to exercise that power and include within section 35D, items which have not been included therein by Parliament. The deductions allowable under the Act ...

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