Gallium Industries Ltd. v. Dy. CIT
INCOME TAX ACT, 1961
Deduction under section 80HHC - Computation -Interest income from FDR
Held: To claim deduction under section 80HHC, excise duty, sale of scrap and job work receipt were not to be considered in computation of total turnover. Since, assessee had incurred expenditure for making FDR interest income of which was brought to tax under head income from other sources, such interest expenditure was to be taken out from profits of export business under section 80HHC.
Income-tax Act, 1961, Section 80HHC
A.Y. : 2002-03
Decision: In favour of revenue
INCOME TAX ACT, 1961
Capital or revenue expenditure - Allowability -Nature of expenses
Held: It was notice that assessee incurred expenditure for purchase of specific gauges for measuring various dimensions and specifications for special purpose machines manufactured by it and after machines had been manufactured, those gauges were of no use to it because each machine was of special quality and orders were not on repetitive basis and accordingly it was held that expenditure incurred thereon was revenue expenditure and not capital expenditure.
Income-tax Act, 1961, Section 37(1)
A.Y. : 2002-03
Decision: In favour of assessee.
INCOME TAX ACT, 1961
Interest under section 234B -- Validity
Held: Interest under section 234B can be charged, even though there was no specific direction to charge such interest in body of assessment order.
Income-tax Act, 1961, Section 234B
A.Y. : 2002-03
Decision: In favour of revenue.
Case Law Analysis :CIT v. Laxmi Machine Works [2007] 290 ITR 667/ 160 Taxman 404 (SC), IFB Agro Industries Ltd. v. Dy. CIT [2002] 83 ITD 96 (Cal.) (SB), CIT v. Shri Ram Honda Power Equip. [2007] 289 ITR 475/ 158 Taxman 474 (Delhi), CIT v. Anjuman M.H. Ghaswala [2001] 252 ITR 1/ 119 Taxman 352 (SC) and Kalyan Kumar Ray v. CIT [1991] 191 ITR 634 (SC)