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Judgment
Civil Appeal. No. 7769/2011 @ SLP (C) No. 9860/2010 and Appeal No. 7771/2011 @ SLP (C) No. 23433/2011
Leave granted.
Having heard learned Counsel on both sides, we are of the view that the High Court ought not to have dismissed the appeals without considering the following questions, which, according to us, did arise for consideration. They are formulated as under:
(A) Whether on the facts and in the circumstances of the case and in law the Hon'ble Tribunal was right in holding that expenditure for earning dividend income cannot be estimated and therefore, cannot be allowed while computing book profits and also under the normal provisions of the Income tax Act?
(B) Whether on the facts and circumstances of the case and in law the Hon'ble Tribunal was right in disallowing u/s 43B of the Income tax Act the unpaid custom duty and excise duty included in closing stock?
(C) Whether on the facts and circumstances of the case and in law the Hon'ble Tribunal was right in holding that sales tax incentive is a Capital Receipt?
Accordingly, the civil appeals are allowed, impugned orders are set aside and the cases are remitted to the High Court to decide the questions, formulated above, in accordance with law.
No order as to costs.
Civil Appeal No. 7770/2011 @ SL.P. (C) No. 10431/2010:
Leave granted.
Having heard learned Counsel on both sides, we are of the view that the High Court ought not to have dismissed the appeal without considering the following questions, which, according to us, did arise for consideration. They are formulated as under:
(A) Whether on the facts and in the circumstances of the case and in law the Hon'ble Tribunal was right in holding that estimated expenditure for earning dividend income cannot be subject to disallowance while computing book profits as well as under the normal provisions of the Income tax Act?
(B) Whether on the facts and in the circumstances of the case and in law the Hon'ble Tribunal was right in holding that sales tax incentive is a Capital Receipt?
Accordingly, the civil appeal is allowed, impugned order is set aside and the matter is remitted to the High Court to decide the questions, formulated above, in accordance with law.