Law:

Section:

Section 43(1) of the Income-tax Act, 1961 - Actual cost - Where Tribunal found that money paid for annual maintenance contract (AMC) for ten years warranty was included in invoice at time of purchase of equipment and, therefore, it should be included as sale price of said equipment, it was a finding of fact [In favour of assessee] The Supreme Court in the case of Guzdar Kajora Coal Mines Ltd. v. CIT[1972] 85 ITR 599 has held that the original cost to the assessee of a particular asset is a question of fact. Thus, where the Tribunal found that the money paid for annual maintenance contract (AMC) for ten years warranty, was included in the invoice at the time of purchase of equipment and, therefore, Tribunal held that it should be included as sale price of the said equipment, the findings of the Tribunal was a finding of fact. CASE REVIEW Guzdar Kajora Coal Mines Ltd. v. CIT [1972] 85 ITR 599 (SC) (para 1)followed and relied upon. CASES REFERRED TO Guzdar Kajora Coal Mines Ltd. v. CIT [1972] 85 ITR 599 (SC) (para 1) Sanjeev Sabharwal for the Appellant. P.N. Monga and Manu Mongafor the Respondent. JUDGMENT The Income-tax Appellate Tribunal (hereinafter referred to as "the Tribunal"), has arrived at a finding of fact, in the facts situation appearing on record, that the money paid for annual maintenance contract (AMC) for ten years warranted, which was included in the invoice at the time of purchase of equipment should be included as sale price of the said equipment. In this regard, learned counsel for the Revenue has referred to the of the Supreme Court in the case of Guzdar Kajora Coal Mines Ltd. v. CIT [1972]85 ITR 599, wherein the following principle was laid down (headnote) : "The original cost to the assessee of a particular asset is a question of fact which has to be determined on the evidence or material placed before or available to the income-tax authorities. Any document or formal deed mentioning the consideration or the cost paid for the purchase of an…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492