|
II. Direct Tax Caselaw:
1. The Commissioner of Income Tax, Faridabad Vs. M/s Amtek Auto Ltd., I.T.A. No. 38 of 2010, Date of Decision: 26.02.2013, High Court of Punjab & Haryana
Whether capital expenditure claimed to be revenue expenditure render the assessee liable to penalty proceedings u/s 271(1)(c.)?
No, merely for the reason that the assessee has claimed loss on account of sales of fixed assets & loss on sale of shares and expenses paid towards placement of preference shares to be revenue expenditure, it does not tantamount to furnishing of inaccurate particulars under section 271(1)(c). As there is fine distinction as to when expenditure can be treated as revenue or a capital expenditure, it does not attract penal provisions of this section.
(Please click here for judgment)
2. The Commissioner of Income Tax-I, Chandigarh Vs. M/s Essen Deinki, Chandigarh, ITA No. 280 of 2012, Date of Decision: 09.01.2013, High Court of Punjab & Haryana
Whether the expenses for Research & Development is allowable under section 35(1)(iv) when the item had already been developed and sold by the assessee?
Yes, it was held that the capital expenditure incurred on the Research and Development activities is a continuous process and even if a specific product has been sold at one stage, but still the developments in the product can be carried out. Thus, appeal by the revenue is dismissed.
(Please click here for judgment)
|
New User? 
Subscribe Now