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of <h1>Supreme Court upholds ITAT and High Court decisions, emphasizing commercial considerations in tax liability determinations.</h1> The Supreme Court affirmed the decisions of the ITAT and the High Court, dismissing the revenue's challenge. The judgment highlighted the importance of ... - Issues involved:The appeal questions the correctness of the judgment by Rajasthan High Court regarding various substantial questions of law related to Income-tax Act, 1961.Applicability of section 43B:The dispute revolves around the applicability of section 43B of the Income-tax Act, 1961. The High Court concluded that this provision is not applicable to the case for the assessment year 1994-95. The judgment also extends to assessment years 1991-92 and 1992-93.Deletion of additions by ITAT:The ITAT deleted certain additions made by the Assessing Officer, including the addition of &8377; 5,51,262 for unpaid bottling fee and &8377; 38,442 for research and development expenses. The High Court affirmed the findings of ITAT on these deletions, emphasizing commercial considerations and business expediency.Depreciation on research and development assets:The Division Bench of the High Court upheld the findings of ITAT regarding the allowance of depreciation on research and development assets related to a closed business of the assessee-company. The assets were deemed not used during the previous year, and the decision was based on a subsequent agreement dated 10-4-1992.Technical service charges dispute:The additional issue in the case pertained to technical service charges. The High Court found that the new agreement in April 1992 was not a means to reduce tax liability but was a legitimate expenditure based on business expediency and commercial considerations. The Tribunal and High Court's findings were upheld, dismissing the revenue's challenge.Conclusion:The Supreme Court disposed of the appeal, affirming the decisions of the ITAT and the High Court on various issues related to Income-tax Act, 1961. The judgment emphasized the importance of commercial considerations and business expediency in determining tax liabilities.
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