Rajalakshmi Mills Ltd. v. ITO
INCOME TAX ACT, 1961
Revision under section 263--Validity-Further enquiries
Held: CIT was not required to make further enquiries before cancelling assessment order passed by AO but while, it can regard order as erroneous on ground that AO should have made further enquiries before accepting statement made by assessee in his return.
Income-tax Act, 1961, Section 263
A.Y. : 1981-82
Decision:In favour of revenue.
INCOME TAX ACT, 1961
Business disallowance under section 40A(7) - Gratuity -Contribution to approved gratuity fund
Held: It was not correct to held that provision made by assessee in books of accounts in regard to contributions made in approved gratuity fund should be allowed under section 40A(7)(b)(i), despite fact that there was no incremental liability towards gratuity due for assessment year under consideration.
Income-tax Act, 1961, Section 40A(7), read with section 36(1)(v)
A.Y. : 1981-82
Decision: In favour of revenue.
Case Law Analysis:Rampyari Devi Saraogi v. CIT [1968] 67 ITR 84 (SC) (para 2), CIT v. Premier Cotton Spg. Mills Ltd. [2002] 258 ITR 253/[2003] 131 Taxman 79 (Mad.) (para 7), Pereira and Roche v. CIT [1966] 61 ITR 371 (Mad.) (para 7), Kanpur Tannery Ltd. v. CIT [1958] 34 ITR 863 (All.) (para 8), Shree Sajjan Mills Ltd. v. CIT [1985] 156 ITR 585/23 Taxman 37 (SC) (para 9) and CIT v. Loyal Textile Ltd. [1998] 231 ITR 573 (Mad.) (para 11).