TaxTMI 
TaxTMI 
2018 (12) TMI 460
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....as not been defined in the Act. It is word of wide amplitude and takes within its ambit any amount which has the effect on the debit side of the P&L account. Even capitalized amounts have such effect on the P&L account, albeit in the year when allocation out of such capital expenditure is made against the profits. iii) Deduction of an expenditure may or may not be claimed by direct debit in the P&L account. Where an expenditure is capitalized in an year, it does not mean that it is not being claimed as a deduction, only the time of deduction is deferred. It will be claimed as a deduction in the year when the corresponding income is recognized. iv) There is nothing in the provision which suggests that the provision is applicable only where the expenditure in question has been charged to the P&L account of a particular year. The expenditure which is capitalized in any year under "work-in- progress" etc. is ultimately charged to the P&L account when the corresponding income is recognized in a subsequent year. Therefore, such outgo/expenditure, if not out rightly disallowed or added to the P&L account, is liable to be reduced from "work-in-progress" or the capital acc....
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....d. CIT(A), Revenue is in appeal before us. 3. Ground No.1 is in respect of additions that is deleted by Ld. CIT (A) under section 40(a)(ia) of the Act. 4. Ld. Sr. DR placed reliance upon the orders of authorities below as well as order dated 31/08/17 passed by coordinate bench of this Tribunal in assessee's own case for assessment year 2011-12 to 2013-14 in ITA No. 4279 -4281/del/2015. 5. Ld.AR submitted that, none of these expenses were charged to profit and loss account, as no revenue was recognised during the year under consideration. He submitted that Ld.AO has erred in disallowing these payments under section 40(a)(ia) of the Act without considering the fact that, these payments has not yet been charged to the profit and loss account as taxable income of assessee. 6. We have perused the submissions advanced by both sides in light of records placed before us. We have also perused order passed by this Tribunal dated 31/08/17 passed by Coordinate bench (supra), in assessee's own case placed at page 32-51 of paper book. 7. It is observed that this Tribunal considered demand raised by Ld.AO under section 201(1) and section 201 (1A) of the Act, for assessment year 201....
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.... of interest accrued in favour of GNOIDA by any petitioner who is a bank - to the GNOIDA, towards fixed deposits, are also exempt from TDS. 21. In view of the above conclusions, it is hereby directed that wherever amounts have been paid by the petitioners, towards TDS as a result of the coercive process used by the Revenue, the GNOIDA shall make appropriate orders to credit/reimburse such payments. In case payments are made through deposit, over and above the rental amounts paid to the GNOIDA, without TDS, the income tax authorities shall not pursue any coercive proceedings; GNOIDA shall duly reimburse the petitioners for such amounts. Any amounts deposited in the court or with the Revenue, shall, to the extent of TDS liability only be appropriated for such purpose. It is clarified that GNOIDA shall ensure that reimbursement is made to compensate the petitioners' excess payments; the income tax authorities shall not pursue any coercive methods for recovery of the amounts, or penalty, once the basic liability (with interest, to be paid by GNOIDA) is satisfied. The impugned orders are quashed; the Revenue shall make consequential orders, to give effect to this judgment, after ....
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....of India [2004] 139 Taxman 258/267 ITR 460 stated following: 'A bare perusal of the Explanation of Section 10(20) shows that now only four entities are local authorities for the purpose of Section 10(20), namely, (i) Panchayat, (ii) Municipality; (iii) Municipal Committee and District Board; (iv) Cantonment Board Krishi Utpadan Mandi Samiti is not one of the entities mentioned in the Explanation to Section 10(20). It may be noted that the Explanation to Section 10(20) uses the word 'means' and not the word 'includes'. Hence, it is not possible for this Court to extend the definition of 'local authority' as contained in the Explanation to Section 10(20), vide P. Kasilingam v. P.S.G. College of Technology, AIR 1995 SC 1395 (para 19). It is also not possible to refer to the definitions in other Acts, as the IT Act now specifically defines 'local authority'. It is well settled that in tax matters the literal rule of interpretation applies and it is not open to the Court to extend the language of a provision in the Act by relying on equity, inference, etc. It is the first principle of interpretation that a statute s....
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....ng statute and must, Therefore, be construed strictly. It is fairly wellsettled by a long line of decisions rendered by the Supreme Court that while interpreting a taxing statute, one has simply to look to what is clearly stated therein. There is, in fiscal statutes, no room for any intendment nor is there any equity about the levy sanctioned under the same. The following passage from Cape Brandy Syndicate v. IRC 1921 (1) KB 64 has been approved by the Apex Court in the decisions rendered by their Lordships. "in a taxing Act one has to look merely at what is clearly said. There is no room for any intendment. There is no equity about a tax. There is no presumption as to a tax. Nothing is to be read in, nothing is to be implied, One can only look fairly at the language used."' 54. We fully endorse the views taken by the High Court in the above two judgments. 55. Now, reverting back to Explanation to Section 10(20), these are entities which mean the local authority. The submission of the appellant is that the appellant is covered by Clause (ii) of the Explanation i.e. "Municipality as referred to in clause (e) of Article 243P of the Constitution". We, while....