Search Results Page
Search Results
1 - 10 of 15 (0.23 seconds)The Income Tax Act, 1961
The Companies Act, 1956
Section 115JB in The Income Tax Act, 1961 [Entire Act]
Section 40 in The Advocates Act, 1961 [Entire Act]
Section 37 in The Advocates Act, 1961 [Entire Act]
Srei Infrastructure Finance Limited, ... vs Dcit, Circle-11(2), Kolkata, Kolkata on 31 December, 2019
In the light of the aforesaid decision of the Special bench of this Tribunal in Rain
Commodities Ltd. (supra) this issue is no longer res-integra and therefore we are of the
opinion that the Ld. CIT(A) rightly upheld the action of AO on this issue, which does not
require any interference from our part, so we confirm his action and dismiss this ground of
assessee.
The Commissioner Of Income Tax-2 vs Raymond Ltd on 21 March, 2012
And it is noted that the amount transferred to DRR is not in excess of the amount to be
required to paid at the time of repayment of the debentures, so it cannot be treated as reserve
for the purpose of Schedule VI to the Companies Act, 1956; and as discussed the amount set
apart to meet a known liability as such the DRR cannot be considered as 'reserve' to attract
explanation 1(b) of section 115JB of the Act. Moreover, we note that the Ld. CIT(A) has
allowed the claim by referring to the decision of this Tribunal in SREI Equipment Finance
Ltd. Vs. DCIT, ITA No. 424/Kol/2011 wherein the Tribunal has relied on the ratio of the
decision laid by the Hon'ble Bombay High court in the case of CIT Vs. Raymond Ltd.
(2012) 71 DTR 265 (Bom.) wherein it has been held that mere fact that the debenture
redemption reserve is labeled as a reserve will not render it as a reserve and an amount
which is retained by way of providing a known liability is not a reserve within the meaning
of explanation (b) of section 115JA of the Act. Therefore, in view of the discussion (supra)
we do not find any infirmity in the order passed by the Ld. CIT(A) and, therefore, we
confirm the same and dismiss this ground of appeal of revenue.
Dcit, New Delhi vs M/S. Kribhco Shyam Fertilizers Ltd., ... on 17 December, 2018
"The assessee's additional last/ substantive ground avers that it is entitled for the
educations secondary higher education cess as overhead deduction amounting to Rs.
423618317 u/s 37 of the Act. We note that hon'ble Rajasthan high court's decision in
DB Income Tax Appeal No. 52/Kol/2018 M/s Chambal Fertilizers Ltd. vs. DCIT
decided on 31.07.2018 takes into account CBDT circular dated 18.05.1967 for
holding such cess(es) to be allowable as deduction. Their lordships hold that section
40a(ii) applies only on taxes such than earn cess(es). We therefore reject the
Revenue's contentions supporting the impugned disallowance. The assessee's instant
substantive ground is accepted. The Assessing Officer is direction to verify all the
relevant facts and allow the impugned cess (es) as deduction u/s 37 of the Act. The
assessee's appeal I.T.A. No. 685/Ko/2014 is partly accepted in above terms.
National Rayon Corporation Ltd vs The Commissioner Of Income Tax on 29 July, 1997
11. We have heard rival submissions and gone through the facts and circumstances of
the case. We note that an amount of Rs.3,50,00,000/- was transferred by the assessee to
Debenture Redemption Reserve (DRR) which was required to be paid at the time of
redemption of the debentures and the assessee claimed exclusion of it while computing book
profit u/s 115JB of the Act. However the AO was of the opinion that the amount carried to
any 'reserve' need to be added as per Explanation 1(b) of Section 115JB of the Act and
added it while computing the book profit. On appeal the Ld. CIT(A) has allowed the claim
of assessee and excluded it from book profit. When we examine this issue we note that the
Hon'ble Supreme Court in the case of National Rayon Corporation Vs. CIT 227 ITR 164
(SC) has held that " the basic principle is that an amount set apart to meet a known liability
cannot be regarded as reserve". It is common knowledge that by issuing debentures a
company takes a loan which it has to repay; and the loan is taken against the security of its
6
ITA No. 1390/Kol/2019 &
CO No. 20/Kol/2020
M/s. India Power Corporation Ltd., AY: 2013-14
assets. Even though the loan need not be repaid in the year of account, the obligation to
repay exists, therefore, any money that is set apart to meet a known liability is shown in the
Balance Sheet under the head liability. Since in the present case the amount of Rs.3.50 cr.
was transferred to DRR which was compulsory u/s 117C of Companies Act, 1956 which
reads as under: