DCIT vs. Sudal Industries Limited (ITAT Mumbai)

Head Notes:

Disallowance of interest under section 36 (1)(iii) – Deposit for premises -Related party – assessee has interest free funds available with it in the form of share capital and free reserve : No disallowance :
Dies written off- no sale of Dies during the year – valuation increase/decrease in the dies is not at all revenue expenditure- Assessee never claim it is a deduction – merely adjustment .

State Government subsidy- Amount received as Grant AO treating the same as Business Income – State Government subsidy for expansion of capacity in the form of Octroi duty refund – the object of the scheme and stated that it is for industrialization of a particular region and therefore it is capital receipt – not chargeable to tax

Section(s): sec 36(1)(iii) , sec 145 & sec 4
Counsel(s): Ajay R Singh Advocate
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Uploaded By Ajay
Date of upload: June 23, 2022
One comment on “DCIT vs. Sudal Industries Limited (ITAT Mumbai)
  1. Sejal Savla says:

    ‘No disallowance for interest-free funds’ The same thing keeps on repeating in so many cases and still AO continue to make high-pitched assessments. This should qualify as judicial indiscipline since the assessing offices also count as quasi-judicial officers.

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