2017 (9) TMI 1527

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....te JUDGMENT 1. The present appeal pertains to the assessment year 2000-01. The Revenue has filed the appeal raising the following grounds : "(a) Whether in the facts and circumstances of the case, the Income-tax Appellate Tribunal is justified in deleting the disallowance made under section 14A of the Act without appreciating the fact that the assessee-company has not proved that th....

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....e Income- tax Appellate Tribunal is justified in deleting the disallowance on account of VRS expenses holding that the same are incurred for business by incorrectly observing that manufacturing unit of the assessee at Mulund, Mumbai is still working when the assessee itself had admitted that it has stopped manufacturing unit at Mulund as mentioned para 11 of the Commissioner of Income-tax (Appeals....

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....es are not identical to the facts of the present case ? (f) Whether in the facts and circumstances of the case, the Income- tax Appellate Tribunal has erred in holding that VRS expenses are incurred for the purpose of business ignoring decisions of the Supreme Court in the case of CIT v. Gemini and on the decision of the Madras High Court in the case of CIT v. Coimbatore Premier Corpn. P.....

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....facturing unit at Mulund. 3. Mr. Shah, the learned counsel for the respondent supports the order and submits that as far as question with regard to disallowance under section 14A of the Act is concerned, in the previous assessment order, the similar issue had arisen and the same is decided in favour of the assessee. The learned counsel further submits that the expenses towards VRS are rightly a....