Law:

Section:

Section 37(1) of the Income-tax Act, 1961 - Business expenditure - Allowability of Amount paid by assessee to Green Environment Co-operative Society on account of contribution for common effluent treatment plant with a view to protect assessee's business as ongoing entity was allowable as revenue expenditure [In favour of assessee] Where an amount was paid by the assessee to Green Environment Co-operative Society on account of contribution for common effluent treatment plant: Held that, the Commissioner (Appeals) as well as the Tribunal had held that the assessee had made only a contribution to protect its business as an ongoing entity. Considering the concurrent findings of the Commissioner (Appeals) as well as the Tribunal, that the assessee had made only a contribution for laying down pipeline for the purpose of carrying effluent discharge, in view of the decision in Joint CIT v. Deversons Industries Ltd. [2007] 290 ITR (AT) 287 (Ahd.) the amount paid was allowable as revenue expenditure. CASE REFERRED TO Joint CIT v. Deversons Industries Ltd. [2007] 290 ITR (AT) 287 (Ahd.). Manish R. Bhatt for the Appellant. JUDGMENT 1 The following questions have been proposed for the admission of this appeal : "(A) Whether the Appellate Tribunal is right in law and on facts in confirming the order passed by the Commissioner of Income-tax (Appeals) deleting the disallowance of Rs. 24,22,063 paid to Green Environment Co-operative Society on account of contribution for common effluent treatment plant ? (B) Whether the Appellate Tribunal is right in law and on facts in not appreciating that the above payment was penal in nature and hence not allowable ? (C) Whether the Appellate Tribunal is right in law and on facts in not appreciating that expending the above amount the assessee got an enduring benefit and, therefore also, the said payment was not allowable on revenue account ?" 2. While considering the issues raised in these questions, the Tribunal has considered these issues as under : 3. After hearing both the parties, we find the matter stands covered in favour of the assessee by the decision of the Tribunal in the case of Joint CIT v. Deversons Industries Ltd. [2007]…

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