| Case ID |
215b77a2-2e94-469a-861d-6b8561432ce2 |
| Body |
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| Case Number |
Miscellaneous Civil Case No.208 of 1994 |
| Decision Date |
Jul 15, 1996 |
| Hearing Date |
|
| Decision |
The court held that the assessee, M.P. Audyogik Kendra Vikas Nigam, was a Government undertaking and the adjustments made regarding interest on term loans were justified. The Tribunal's conclusion that the interest on the term loans was deductible was upheld. The court noted that the changes in accounting and the notifications from the Government of Madhya Pradesh were properly communicated to the Income-tax Officer prior to the assessment being finalized. Therefore, the claim for deduction of interest on term loans was allowed, and the decision of the Commissioner of Income-tax (Appeals) was affirmed. |
| Summary |
This case revolves around the assessment of income tax concerning M.P. Audyogik Kendra Vikas Nigam, a Government undertaking. The case highlights the complexities of income tax deductions related to interest on term loans and collection charges. The Madhya Pradesh High Court examined whether the interest on term loans was deductible after the Government disapproved the assessee's claims through notifications. The court found that the adjustments made by the assessee prior to the assessment were valid and upheld the Tribunal's decision. This case underscores the importance of timely communication and compliance with government regulations in tax matters. It serves as a significant reference for similar tax deduction cases in the context of government undertakings, emphasizing the need for clarity in accounting practices and the treatment of interest in financial statements. |
| Court |
Madhya Pradesh High Court
|
| Entities Involved |
M.P. Audyogik Kendra Vikas Nigam
|
| Judges |
A. K. Mathur, C.J.,
S. K. Kulshrestha, J
|
| Lawyers |
V. K. Tankha for the Commissioner,
Y. K. Munshi for the Assessee
|
| Petitioners |
COMMISSIONER OF Income Tax
|
| Respondents |
M. P. AUDYOGIK KENDRA VIKAS NIGAM (RAIPUR) LIMITED
|
| Citations |
1999 SLD 334,
1999 PTD 2366,
(1997) 227 ITR 799
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Act, 1922,
Indian Income Tax Act, 1961
|
| Sections |
Not available
|