TaxTMI 
TaxTMI 
2017 (4) TMI 1558
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....eal of the department. 2. This Court while admitting the matter on 10th April, 2012 has framed the following issues : Whether on the facts and in the circumstances of the case, the Tribunal was justified in holding that a sum of Rs. 3,24,000/- as contribution to PACs development fund and Rs. 17,90,240/- to PACs managers salary security fund are not deductible as business expenditure u/s 37 of the....
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....ain, the Contingencies Reserve is to be created from existing reserves or from "the revenues of the undertaking". This clearly indicates that the monies which have to be put into the Contingencies Reserve reach the electricity company and are not diverted away from it. It is the electricity company which has to invest the sums appropriated to the Contingencies Reserve. The investment would be in i....
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....is submission, the amounts credited to the Contingencies Reverse were diverted. Mr. Sachar replied that they were diverted to and vested in the State Government. This, for the reasons set out above, is quite unacceptable. We hold that the amount credited to the Contingencies Reserve is not diverted by reason of an overriding obligation or title and, in determining the business profits of the asses....
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....8 (SC) wherein it has been held as under:- The cost of purchase includes duties and taxes (other than those subsequently recoverable by the enterprise from taxing authorities ), freight inwards and other expenditure directly attributable to the acquisition. Hence trade discounts, rebate, duty drawback, and such similar items are deducted in determining the costs of purchase. Therefore, duty drawba....