The Tax Publishers2020 TaxPub(DT) 2514 (Karn-HC)

INCOME TAX ACT, 1961

Section 37(1)

Substantial question of law was covered by decisions of this court in case of Kirloskar Electric Co. Ltd v. CIT (1997) 228 ITR 674 (Kar-HC) : 1997 TaxPub(DT) 1306 (Karn-HC) and CIT v. Rathi Graphics Technologies Ltd. (2015) 378 ITR 107 (Del-HC) : 2015 TaxPub(DT) 4360 (Del-HC) and answered against the Revenue, therefore, claim of the assessee was allowable as business expenditure.

Business expenditure - Disallowance of restructuring package - Allowable revenue expenditure or not -

Assessee was carrying on the business of manufacture and sale of pellets hot rolled coils, sheets and plates. It claimed a sum restructuring package as deduction. AO disallowed the claim for restructuring package as deduction. Held: Substantial question of law was covered by decisions of this court in case of Kirloskar Electric Co. Ltd v. CIT (1997) 228 ITR 674 (Kar-HC) : 1997 TaxPub(DT) 1306 (Karn-HC) and CIT v. Rathi Graphics Technologies Ltd. (2015) 378 ITR 107 (Del-HC) : 2015 TaxPub(DT) 4360 (Del-HC) and answered against the Revenue, therefore claim of the assessee was allowable as business expenditure

Followed:CIT v. Rathi Graphics Technologies Ltd. (2015) 378 ITR 107 (Del-HC) : 2015 TaxPub(DT) 4360 (Del-HC) Kirloskar Electric Company Ltd. v. CIT (No. 1) (1997) 228 ITR 674 (Kar-HC) : 1997 TaxPub(DT) 1306 (Karn-HC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2003-04

INCOME TAX ACT, 1961

Section 37(1)

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