TaxTMI 
TaxTMI 
1998 (3) TMI 28
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....ce of the assessee and the Department. Tax Case No. 948 of 1985 is at the instance of the assessee. Tax Case No. 949 of 1985, is at the instance of the Department. The question of law referred to us by the assessee is as follows : "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal has rightly held that the disallowance under section 40A(8) has to be m....
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....on of section 40A(8) of the Income-tax Act, 1961. This court in the case of Andhra Prabha (P.) Ltd. v. CIT [1999] 238 ITR 525, has taken a view that "expenditure" under section 40A(8) does not refer to net expenditure after setting off of interest income of the assessee. In other words, an assessee is not entitled to refer to the net expenditure after setting off of the interest income. Following....
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....as found that, since the system of accounting adopted by the assessee was the mercantile system of accounting, the assessee was entitled to treat it as a liability due to the Government. The Revenue has challenged the order of the Appellate Tribunal and the question of law set out earlier has been referred to us at the instance of the Department. At the time of hearing of the tax case under refere....