2008 (2) TMI 424

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ties. 2. The petitioner is challenging the assessment order dated 31.12.2007 (Annexure-5 to the writ petition) passed by Joint Commissioner of Income Tax, Range-II, Allahabad under Section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the 'Act') for the assessment year 2005-06 insofar as it has fastened the liability of tax of Rs. 1,29,10,775/- upon the petitioner. He has also ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f the petitioner fastening upon him the liability of tax under the Act. 4. The learned counsel for the petitioner contended that the aforesaid payment is also liable to be taxed in the hands of the persons to whom the payments are made being their income and tax deducted at source on such amount by the petitioner at best would have been in the nature of part payment of tax by such person. There....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t has to be excluded from computation of total income for the year, which is chargeable to tax under the Act. Amount spent towards business expenditure are deductible under Section 37 of the Act in General. However, Section 40 provides for certain amounts, which are not deductible in computing the income chargeable under the Act. A sum paid for advertisement towards advancement of the business is ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... We are not shown of any authority providing that such taxation is not permissible in law and is bad even otherwise. 6. Moreover, despite our repeated query, the learned counsel for the petitioner could not show as to how and in what manner he claims Section 40(a)(ia) of the Act to be ultravires. He could not show any legislative incompetence in enacting such provision. Vires of an statute can....