2016 (9) TMI 1685

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....or M/s. Subbaraya Iiyar JUDGMENT ( Judgment of this Court was delivered by Nooty Ramamohana Rao, J) This Tax Case Appeal is preferred by the Revenue under Section 260A of the Income Tax Act, aggrieved by the decision of the Income Tax Appellate Tribunal, Chennai 'B' Bench, rendered in ITA No.1044/Mds/2006, dated 28.09.2006. 2. The Substantial Questions of Law which are framed f....

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....his order dated 04.01.2006 partly allowed the appeal to the extent of allowing 2% of the exempt income by considering it as a reasonable expenditure necessary for earning the exempted income. For arriving at such a conclusion, the Appellate Authority has relied upon several orders passed by the Income Tax Appellate Tribunal wherein 2% of the exempted income is considered consistently to be a fair ....

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....02.2015. 5. Sri.M.Swaminathan, learned Standing Counsel for the Income Tax Department strenuously contends that there cannot be any hard and fast rule to universally apply a standardized formula with regard to the expenditure the Assessee would have incurred. The expenditure has got to be shown and demonstrated to have been actually incurred. There could not have been any hypothetical basis on ....