2026 (3) TMI 362

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....e Ld. Deputy Commissioner of Income-tax, Circle 6(1)(2), Mumbai, order passed U/s 143(3) of the Act, date of order 29/12/2019. 2. The brief facts of the case are that the assessee is engaged in business of manufacturing and marketing of fabrics and value added yarn and ready garments, etc. The return was filed declaring total income at Rs. 133,72,06,880/- under normal provisions of the Act. The file was taken for scrutiny. The Ld.AO found that the assessee claimed deduction under section 32 of the Act amount to Rs. 4,12,83,186/- on goodwill, which was disallowed and added to the total income of the assessee. The aggrieved assessee challenged the order before the Ld.CIT(A). The Ld.CIT(A) respectfully relied on the order of the Hon'ble Sup....

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....tribution made to Tarapur Environment Protection Society (TEPS) as capital in nature as the said payment is in the nature of investment and even the assessee had recongnised the same as investment in its books and had in fact not written off in the financials and only claiming it as expense under the I.T. Act. But assessee submitted that though the payment was earlier classified as investment, the fact is that this contribution towards TEPS was mandatory on account of the directions of the Supreme Court and was a mandatory payment if its manufacturing unit was to continue functioning at Tarapur. As regards the finding of the AO that the appellant has not written it off in its financials, the appellant has submitted and further submitted tha....

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....e findings so recorded by Ld. CIT(A). Therefore, we see no reasons to interfere into or to deviate from the lawful findings so recorded by Ld. CIT(A). Hence, the ground raised and by the revenue stands dismissed." 4. The Ld. DR supported the impugned assessment order; however, he was unable to cite any contrary judicial precedent to rebut the findings recorded by the Ld. CIT(A). 5. We have heard the rival submissions and perused the material available on record. The issue in dispute stands squarely settled by the judgment of the Hon'ble Supreme Court in Smifs Securities Ltd. (supra), which has been duly followed by the Ld. CIT(A). We find that the assessee's case is also squarely covered by the order of the co-ordinate Bench of the IT....