2012 (10) TMI 1220 - HC - Income Tax

Court affirms Tribunal decision on consultancy charges, rejects Revenue's deduction computation argument. Appeal admitted on community development expenses.

The Court upheld the Tribunal's decision on consultancy and service charges, citing a previous case. Regarding deduction computation under Section 115JA, ... - Issues involved: The judgment addresses various questions of law raised by the Revenue in an appeal, including the treatment of consultancy charges, service charges, deduction computation under different sections, community development expenses, and mining prospecting expenses.Consultancy Charges and Service Charges: The Revenue questioned the treatment of consultancy charges and service charges as capital expenses. The Tribunal's decision regarding these expenses was challenged, but the Court could not entertain these questions as similar issues were not entertained in a previous case.Deduction Computation under Section 115JA: The Tribunal's approach to computing income under Section 115JA, specifically regarding the deduction under Section 80IA and 80HHC, was disputed. The Revenue argued that the deduction should be based on book profits, not on profits under normal provisions. However, the Court noted that these issues were already decided against the Revenue in a previous Supreme Court case.Community Development Expenses: The Tribunal's decision to allow community development expenses under Section 37(1) was the subject of dispute. The Court admitted the appeal specifically on this question, indicating a need for further examination and clarification.Mining Prospecting Expenses: The treatment of mining prospecting expenses as capital expenses was contested. The Tribunal's ruling on this matter was challenged, but the Court did not address this issue in detail in the judgment.