2012 (4) TMI 638 - HC - Income Tax

Revenue's Appeal Dismissed for AY 1985-86 on Various Income Tax Issues

The Commissioner of Income Tax 2, Mumbai Versus Tata Iron & Steel Co. Ltd.

The appeal by Revenue against the Income Tax Appellate Tribunal decision for Assessment Year 1985-86 was dismissed as it did not raise any substantial ... - Issues involved: Appeal by Revenue u/s Income Tax Appellate Tribunal decision for Assessment Year 1985-86.Question A: Tribunal allowed expenses for project consultancy and obtaining project report for expansion as business expenditure based on own decision and Division Bench judgment.Question B: Tribunal justified expenses related to welfare of employees as having business nexus based on own decision for Assessment Year 1968-69.Question C: Tribunal allowed investment allowance u/s 32A, Extra Shift Allowance, and additional depreciation based on consistent view in favor of assessee from Assessment Year 1968-79 to 1971-72.Question D: Tribunal justified additional depreciation and extra shift allowance on specific equipment not related to manufacturing activity based on similar reasoning as question C.Question E: Issue of bad debts covered in favor of assessee by Supreme Court decision, hence no substantial question of law.Question F: Tribunal noted expenses incurred for motivated work force as business expediency, no substantial question of law.Question G: Tribunal allowed depreciation for eighteen months on acquired division profits, no error found, no substantial question of law.Question H: Tribunal upheld depreciation claim for rolling mill rolls in tubes division as part of iron and steel industry, no error found, no substantial question of law.The Appeal was dismissed as it did not raise any substantial question of law on the questions urged.