2016 (1) TMI 1033

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....llant : Shri Anand Parchure with Shri Bhushan Mohata, Advocates For the Respondent : Shri K. P. Dewani, Advocate JUDGMENT ( Per B. P. Dharmadhikari, J.) The questions which arise for adjudication in these matters as formulated are common. It is not in dispute that the contribution by the assessee as the employer and the provisions made to honour the commitment in terms of the National ....

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....s the overloading charges are concerned, after hearing learned Advocate Shri Parchure for the Revenue and learned Advocate Shri Dewani for the assessee, we find that the percentage of overloading charges paid by the assessee to the railways as compared to the normal loading charges is minuscule. The overloading charges do not appear to have been paid deliberately. Learned Advocate Shri Dewani atte....

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....law arising as the ITAT has allowed payment of overloading charges as expenditure which can be deducted under Section 37 of the Income Tax Act, 1961. 5] The last question raised is about the compensation expenditure. The learned Counsel for the Revenue contends that the said expenditure is capital in nature because it is incurred for procuring a capital asset. The assessee has submitted that it....

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.... pay subsistence allowance at the rate of Rs. 2,500/per month per person. It has no corelation with area or extent of land acquired. The company, as a prudent measure, has evolved the policy to pay a lump sum consideration to such land oustees in lieu of employment. If the company is not in a position to provide employment, then only the subsistence allowance at the rate of Rs. 2,500/was/ is being....