| |
| The Tax Publishers2020 TaxPub(DT) 2733 (Pune-Trib) INCOME TAX ACT, 1961
Section 35DDA
Where section 35DDA has been inserted by the Finance Act, 2001 providing for amortization of expenditure incurred on Voluntary Retirement Scheme and assessment year under consideration was prior to the insertion of section 35DDA and hence cannot rule the position, therefore, AO was directed to allow the deduction to assessee.
|
Business deduction under section 35DDA - Payment made towards Voluntary Retirement Scheme - Applicability of provisions prior to assessment year 2001-02 -
Assessee was engaged in the business of manufacture and sale of foundry fluxes, foundry chemicals and profax. AO, in the assessment completed under section 143(3), did not allow deduction incurred on payment of VRS by treating the same as a capital expenditure. Held: Assessee paid the sum towards VRS of certain employees. It was noticed that similar issue came up for consideration before Tribunal in assessee's own case for immediately succeeding assessment year. It was seen that section 35DDA has been inserted by the Finance Act, 2001 providing for amortization of expenditure incurred on Voluntary Retirement Scheme. The assessment year under consideration was prior to the insertion of section 35DDA and hence cannot rule the position. Therefore, AO was directed to allow the deduction to assessee.
Followed:CIT v. Foseco India Ltd. 2013 TaxPub(DT) 1061 (Bom-HC) M/s. Foseco India Ltd. v. ACIT [ITA No. 4667/M/2005, dt. 26-3-2010]
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 1998-99
 SUBSCRIBE FOR FULL CONTENT
|