spot_img

Whether diminution in the value of investment is eligible for

Date:

Share post:



the taxtalk

 77 total views

Whether diminution in the value of investment is eligible for deduction while computing book profit u/s 115JB?

 

Calcutta High Court in the case of PCIT-2, Kolkata Vs Balmer Lawrie and Company Limited was concerned with the issue as to whether prior period expenditure can be claimed as an expenditure in the year in which the liability crystallises? Further issue was whether diminution in the value of investment is eligible for deduction while computing book profit u/s 115JB of the Act?

The Division bench of Calcutta High Court in this case was considering department’s appeal whether any substantial question of law arose when the assessee had claimed Rs 4.08 crore as prior period expenditure on account of same having crystallised during the year though it related to earlier years and also claimed diminution in the value of investment amounting to Rs 11.82 crores u/s 115JB of the Act on account of investment in a company which turned sick.

The Ld Judges after considering the facts of the case and decisions cited held that the tribunal correctly allowed the claim of deduction on account of prior period expenditure as it crystallised during the year.

Further, the claim on account of diminution in the value of investment was held to have been correctly allowed as it could not have been said to be provision for unascertained liability.
Thus, department’s appeal was dismissed as no substantial question of law arose.

The copy of the order is as under:

 

 

Prior Period Exp (1)



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

spot_img
spot_img

Related articles

Uttarakhand police chief asks pilgrims to stagger visit to Char Dham temples to reduce rush

The rush of pilgrims at the Char Dham temples in Uttarakhand is many times higher...

World Environment Day | How Tamil Nadu’s tiger reserves tackle the summer

A quintessential summer day in Tamil Nadu’s five major tiger reserves sees the dry rustle...

Beautification projects add splendour to Tangmarg and Gulmarg, J-K’s popular tourist destinations

Tangmarg and Gulmarg, two picturesque health resorts in north Kashmir's Baramullah District have undergone a...

Tamil Nadu’s Kodaikanal witnessing tourist boom due to annual summer festival

ANI | | Posted by Akanksha Agnihotri, Kodaikanal The queen of mountains, Kodaikanal in Tamil Nadu...
spot_img