Consultancy fees claimed as business expense-can tax disallowance rest on survey suspicion despite invoices, contracts and bank trail? Appeal dismisse...
SC held that the appellant's offer to deposit the amount claimed in the winding-up proceedings did not constitute an unconditional admission of liability but was made to demonstrate bona fides and secure a hearing on merits. The HC erred in disposing of the statutory appeal solely on the basis of this deposit order without adjudicating the dispute substantively. SC modified the HC order dated 06.11.2017, treating it as an interim order permitting deposit, deleted the direction that the appeal stood disposed of, and restored the company appeal to the HC file for decision under Section 483 of the Companies Act, 1956. The deposited amount will abide the final outcome.
SC held that the appellant's offer to deposit the amount claimed in the winding-up proceedings did not constitute an unconditional admission of liability but was made to demonstrate bona fides and secure a hearing on merits. The HC erred in disposing of the statutory appeal solely on the basis of this deposit order without adjudicating the dispute substantively. SC modified the HC order dated 06.11.2017, treating it as an interim order permitting deposit, deleted the direction that the appeal stood disposed of, and restored the company appeal to the HC file for decision under Section 483 of the Companies Act, 1956. The deposited amount will abide the final outcome.
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