Law: Income Tax Act, 1961

Section: 22,256

(a) Income-tax---Reference---Property---Finding that a large building had been let out to an associate company on a very low rent ---Tribuanal justified in remanding matter for determination of reasonable rent---No question of law arose--­Indian Income Tax Act, 1961, Ss. 22 & 256. (b) Income-tax--- ----Reference---Business expenditure---Disallowance---Deductions claimed in respect of presentation articles and in respect of other trade expenses--­Finding that no details had been furnished regarding claims---Tribunal justified in confirming disallowance of expenses---No question of law arose-­Indian Income Tax Act, 1961, Ss. 37 & 256. (c) Income-tax--- ----Reference---Appeal to Appellate Tribunal---Powers of Tribunal---Power to admit or reject additional grounds of appeal---Rejection of claim for deduction because Tribunal found that no such claims had been made before A.0.---Tribunal justified in rejecting additional ground of appeal---No question of law arose---Indian Income Tax Act, 1961, Ss. 254 & 256. Held, dismissing the application for directing reference, (i) that there was no illegality in the order of the Tribunal in remanding the matter for the purpose of proper determination of the amount of rent that could be reasonably received in respect of the property. Though the actual rent would normally be regarded as reasonable rent, in this case, there were special fact, i.e., the large area of the building, the fact that the tenant was the associate company and the further fact that the amount of rent was on the face of it, very low. No question of law arose from its order. (ii) That the Tribunal had found that no details regarding the presentation articles in respect of which a claim for deduction had been made had been furnished and in the absence of evidence, rule 6B of the Income Tax Rules was prima facie attracted and had been rightly applied by the Income-tax Officer. There was no error in the order of the Tribunal confirming the disallowance. No question of law arose from its order. (iii) That regarding the claim for deduction of other trade expenses it was for the assessee to give the details if it wanted to demonstrate that the…

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