Political contribution deductions require genuine transactions; banking records and party registration alone cannot defeat evidence of accommodation e...
Post-death GST liability permits fresh proceedings against legal representatives, while discontinued-business recovery remains limited to the inherite...
Non-confirmation of FEMA seizure prevents adjudicators from overriding pending appellate findings on recorded reasons and suspected foreign asset hold...
The ITAT allowed the assessee's appeal, holding that contributions made to the unrecognized provident fund and unapproved pension fund were eligible for deduction under the relevant provisions of the Income Tax Act. The High Court upheld the ITAT's decision, ruling that the assessee had rightfully discharged its onus and the expenditure incurred was allowable. Regarding the allowability of expenditure u/s 36(1)(iv) as per Section 37(1), the High Court followed its earlier precedent in CIT vs. Punjab Financial Corporation, contrary to the Delhi High Court's view in Sony India P. Ltd. The court held that its earlier judgment would have binding precedential value over differing views of other High Courts. Furthermore, the court ruled that the liability payable by the assessee on account of electricity duty could be set off by the allotment of equity shares, amounting to discharging the liability u/s 43B. The shares allotted by the Government of Haryana were considered as part of the funds and not acquired from other sources, hence allowable u/s 43B of the Income Tax Act. Consequently, the assessee's appeal was dismissed.
The ITAT allowed the assessee's appeal, holding that contributions made to the unrecognized provident fund and unapproved pension fund were eligible for deduction under the relevant provisions of the Income Tax Act. The High Court upheld the ITAT's decision, ruling that the assessee had rightfully discharged its onus and the expenditure incurred was allowable. Regarding the allowability of expenditure u/s 36(1)(iv) as per Section 37(1), the High Court followed its earlier precedent in CIT vs. Punjab Financial Corporation, contrary to the Delhi High Court's view in Sony India P. Ltd. The court held that its earlier judgment would have binding precedential value over differing views of other High Courts. Furthermore, the court ruled that the liability payable by the assessee on account of electricity duty could be set off by the allotment of equity shares, amounting to discharging the liability u/s 43B. The shares allotted by the Government of Haryana were considered as part of the funds and not acquired from other sources, hence allowable u/s 43B of the Income Tax Act. Consequently, the assessee's appeal was dismissed.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
