2005 (5) TMI 550

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....e of Rs. 10,000 out of training and conference expenses under section 37(2A) were not pressed by the ld. Counsel for the assessee at the time of hearing. Therefore, both the grounds are dismissed being not pressed. 3. Ground No. 4 is against confirmation of addition of Rs. 1,88,565 being income received from Bansal Traders. 4. The Counsel for the assessee submitted that this income has been taxed in the assessment year 1993-94. Therefore, the same cannot be taxed twice. The Counsel also submitted that he has no objection if the direction be issued to the Assessing Officer either to assess this income in the assessment year under appeal as upheld by the CIT(A) in the impugned order or in the assessment year 1993-94. 5. The ld. D.R. ....

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....he ld. D.R. contended that the liability to pay the amount to the deceased employees is not contractual but only gratuitous. Therefore, it is not for the purpose of business of the assessee-company. Hence, no deduction is allowable under section 37(1). 10. Having heard both the sides, we have gone through the orders of the authorities below. Though the payment is made not out of any agreement or by virtue of any statutory obligation such payment are meant to get the best from its workers. As a prudent businessman, the assessee is liable to see the betterment of the employees and, hence, paid the amount to the relatives of the deceased employee. We find that this issue is covered in favour of the assessee by the decision of the Tribunal d....

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....hnical know-how as per Balance Sheet, the Assessing Officer stated that Rs. 56,77,140 and cess Rs. 3,75,249 totalling to Rs. 60,52,389 is neither deducted nor paid the TDS nor any provision has been made for deducting the TDS. Assessing Officer, accordingly, took the view that in terms of section 40(a), deduction under section 35AB is admissible only if the tax on account of technical know-how fees is paid or debited under Chapter XVIII-B of the Income-tax Act, 1961. In the assessment order, the Assessing Officer relying on his assessment order for the assessment year 1990-91 held that no deduction will be allowed on amount of Rs. 60,52,389 because the assessee has not complied the provision of section 40(a) read with section 195 of the Inc....

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....n the case of any assessee- (i )any interest (not being interest on a loan issued for public subscription before the 1st day of April, 1938), royalty, fees for technical services or other sum chargeable under this Act, which is payable outside India, on which tax has not been paid or deducted under Chapter XVII-B : Provided that where in respect of any such sum, tax has been paid or deducted under Chapter XVII-B in any subsequent year, such sum shall be allowed as a deduction in computing the income of the previous year in which such tax has been paid or deducted." Provisions of section 40 are in the nature of overriding provisions. It starts with the words "notwithstanding anything contrary in sections 30 to 38", which shows that ....