IT : Where assessee-bank earned tax free income in form of dividends, interest on tax free bonds etc. since said income was directly credited to assessee's account by way of bank transfer, impugned disallowance made by revenue authorities representing 2 per cent of gross total income on account of expenditure incurred in realising said income was to be deleted
IT : Where assessee was a trustee of a mutual fund which did not perform well and, in order to preserve its fair name and goodwill in market, assessee purchased units of said mutual fund at a price higher than their market price for redemption, excess amount so paid by assessee was to be allowed as business expenditure
■■■
[2014] 52 taxmann.com 162 (Karnataka)
HIGH COURT OF KARNATAKA
Canara Bank
v.
Assistant Commissioner of Income-tax, Circle-11(2), Bangalore*
N. KUMAR AND MRS. RATHNAKALA, JJ.
IT APPEAL NOS. 1397 & 1416 OF 2006 AND 723 & 834 OF 2007†
NOVEMBER 12, 2013
I. Section 14A of the Income-tax Act, 1961 - Expenditure incurred in relation to income not includible in total income (Interest of) - Assessment years 1998-99, 2000-01 and 2001-02 - Whether where assessee-bank earned tax free income in form of dividends, interest on tax free bonds and interest on long-term finance, in view of fact that said income was directly credited to assessee's account by way of bank transfer, impugned disallowance made by revenue authorities representing 2 per cent of gross total income on account of expenditure incurred in realising said income was to be deleted - Held, yes [Para 12] [In favour of assessee]
II. Section 37(1) of the Income-tax Act, 1961 - Business expenditure - Allowability of (Mutual funds) - Assessment year 2001-02 - Whether where assessee was a trustee of a mutual fund which did not perform well and, in order to preserve its fair name and goodwill in market, assessee purchased units of said mutual fund at a price higher than their market price for redemption, excess amount so paid by assessee was to be allowed as business expenditure - Held, yes [Para 27] [In favour of assessee]
IT : Where assessee was a trustee of a mutual fund which did not perform well and, in order to preserve its fair name and goodwill in market, assessee purchased units of said mutual fund at a price higher than their market price for redemption, excess amount so paid by assessee was to be allowed as business expenditure
■■■
[2014] 52 taxmann.com 162 (Karnataka)
HIGH COURT OF KARNATAKA
Canara Bank
v.
Assistant Commissioner of Income-tax, Circle-11(2), Bangalore*
N. KUMAR AND MRS. RATHNAKALA, JJ.
IT APPEAL NOS. 1397 & 1416 OF 2006 AND 723 & 834 OF 2007†
NOVEMBER 12, 2013
I. Section 14A of the Income-tax Act, 1961 - Expenditure incurred in relation to income not includible in total income (Interest of) - Assessment years 1998-99, 2000-01 and 2001-02 - Whether where assessee-bank earned tax free income in form of dividends, interest on tax free bonds and interest on long-term finance, in view of fact that said income was directly credited to assessee's account by way of bank transfer, impugned disallowance made by revenue authorities representing 2 per cent of gross total income on account of expenditure incurred in realising said income was to be deleted - Held, yes [Para 12] [In favour of assessee]
II. Section 37(1) of the Income-tax Act, 1961 - Business expenditure - Allowability of (Mutual funds) - Assessment year 2001-02 - Whether where assessee was a trustee of a mutual fund which did not perform well and, in order to preserve its fair name and goodwill in market, assessee purchased units of said mutual fund at a price higher than their market price for redemption, excess amount so paid by assessee was to be allowed as business expenditure - Held, yes [Para 27] [In favour of assessee]
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