In a recent matter of Delhi High Court, it was observed that the deduction can be made on the account of employment given to new workmen. According to facts of the case, a company- International Tractor Limited contended that the company is engaged in the business of manufacturing and assembling tractors and tractor components. The company filed the tax returns in which it declared its taxable income as Rs 147,83,25, 740\/-. While filing the return, the company could not claim the deduction both under Section 80JJAA of the Act and qua prior period expenses.<\/p>\n\n\n\n
The deductions were claimed by the company before the Assessment officer through the statement filed with it which was accompanies by a Chartered Accountant\u2019s report in the form 10DA. Also, the details concerning prior period expenses were also provided by the company. The Assessment officer denied to provide the two deductions claimed by the company and therefore, he assessed the assessee taxable income at Rs. 148,24,34, 100\/- vide assessment order. On being unsatisfied with this order, the company approached the CIT with the appeal.<\/p>\n\n\n\n
The CIT allowed the appeal and overturned the order of AO. The AO approached the tribunal in appeal wherein the tribunal stated that according to the impugned order, the CIT was right in law in entertaining the fresh claims made by the assessee, in respect of the claimed deductions under Section 80JJAA of the Act and the claim concerning prior expenses. According to the bench of Delhi HC, unless the tribunal states their clear view in the present matter, the remand cannot be called for. Therefore, the court quashed the judgement of the tribunal and sustained the fresh claims made by the company to be allowed by the CIT.<\/p>\n\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
In a recent matter of Delhi High Court, it was observed that the deduction can be made on the account of employment given to new workmen. According to facts of the case, a company- International Tractor Limited contended that the company is engaged in the business of manufacturing and assembling tractors and tractor components. The […]<\/p>\n","protected":false},"author":177,"featured_media":370,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1399,113],"tags":[],"yoast_head":"\n