| COURT: | Bombay High Court |
| CORAM: | B. P. Colabawalla J, S. C. Dharmadhikari J |
| SECTION(S): | 40A(8), 80V, Rule 6D |
| GENRE: | Domestic Tax |
| CATCH WORDS: | deposits for payment of taxes |
| COUNSEL: | Atul Jasani |
| DATE: | August 1, 2014 (Date of pronouncement) |
| DATE: | October 10, 2014 (Date of publication) |
| AY: | |
| FILE: | Click here to download the file in pdf format |
| CITATION: | |
| Benefit of section 80V would be available to the Assessee if the borrowings were taken for the purpose of payment of tax | |
In Hindustan Cocoa Products Ltd. v/s Commissioner of Income Tax, reported in [1999] 236 ITR 140, this Court observed that the benefit of section 80V would be available to the Assessee if the borrowings were taken for the purpose of payment of tax. In view of the factual findings in the present case that the deposits were primarily taken for the payment of taxes, and which are uncontroverted even before us, we are of the view that the ratio of the judgment of this Court in Hindustan Cocoa Products Ltd. (supra) would sqaurely apply to the facts of the present case. Question (B) really arises on an interpreation of Rule 6D of the Income Tax Rules, 1962 which dealt with expenditure incurred by the Assessee in connection with the travel of an employee. In the present case, the CIT (Appeals) directed the Assessing Officer to recompute disallowance under Rule 6D of the Rules on the basis of the aggregate trips of each employee and not on the basis of each trip undertaken by the said employee. This direction of the CIT (Appeals) was confirmed by the Tribunal. 5. It is common ground before us that even this Question is squarely covered by a judgment of this Court in the case of Commissioner of Income Tax v/s AOROW India Ltd., reported in [1998] 229 ITR 325.
I wonder how AOs do not understand simple logic of taking loans. if loan not taken how one can pay taxes? so these great AOs waste time of courts. see even after CIT(A) correctly decided why AO or CIT GO FOR APPEALS ? Ridiculous.
Even Jayalslitha can take a loan of 100 crores to pay the fine if other money is not possible, loan is a deductible expenses is it not!