TaxTMI 
TaxTMI 
2019 (4) TMI 1027
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.... two appeals were heard together and we therefore deem it appropriate to dispose them off by way of this common order for the sake of convenience. 2. Briefly stated, the facts relevant for disposal of this appeal are as under: 2.1 The assessee is a private limited company engaged in the business of execution of civil contracts, mainly for the State Government of Karnataka. For Assessment Year 2014-15, the assessee filed its return of income on 27.10.2014 declaring income of Rs. 5,60,29,962/- under normal provisions and 'Book Profits' of Rs. 5,74,83,646/- under section 115JB of the Income Tax Act, 1961 (in short 'the Act'). The case was taken up for scrutiny for this Assessment Year and the assessment was concluded under section 143....
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.... 3. The learned lower authorities failed to appreciate that without incurring this expenditure the appellant cannot start the contract business at all as demonstrated in the case of the appellant before ITAT(Supra) and hence the same is an expenditure incidental to and arising from business and as such allowable as a business expenditure. 4. For these are any other grounds of appeal that may be urged at the time of hearing it is prayed that this Honorable Tribunal may be pleased to allow this appeal in the Interest of Equity and Justice. Assessment Year 2015-16 1. The impugned assessment order is passed in haste violating the principles of natural justice and is opposed to the facts of the case and evidences on r....
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....company is engaged in the business of execution of civil contracts primarily for the State Government of Karnataka. It is submitted that in government contracts, tenders are floated by the concerned departments specifying the terms and conditions of execution of the contract both in technical and financial terms, and the contract for execution of the work is awarded to that party which satisfies the stipulated conditions as per the tender document. In the background of the issue in dispute, the learned AR further submitted that the State Government of Karnataka vide letter No.PW/134/BMS/2007 dated 27.07.2007 instructed the Public Works Department to deduct 0.1% of the bill amount sanctioned towards 'Contractors Benevolent Fund' (CBF). There....
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....diture (not being expenditure of the nature described in sections 30 to 36 [***] and not being in the nature of capital expenditure or personal expenses of the assessee), laid out or expended wholly and exclusively for the purposes of the business or profession shall be allowed in computing the income chargeable under the head "Profits and gains of business or profession" . [Explanation.1]-For the removal of doubts, it is hereby declared that any expenditure incurred by an assessee for any purpose which is an offence or which is prohibited by law shall not be deemed to have been incurred for the purpose of business or profession and no deduction or allowance shall be made in respect of such expenditure.] Explanation 2.-For....