This article provides a comprehensive overview of the case of Murcury Rubber Mills versus the ACIT, circle 36(1), New Delhi, where significant tax deductions were disallowed for the assessment year 2013-14.
Murcury Rubber Mills filed a return declaring a gross total income of Rs. 54,58,190 after claiming a deduction under Section 80IC of the Income Tax Act. The assessment resulted in several disallowances leading to a substantial increase in taxable income, prompting the company to appeal against the order.
The primary disputes involved the disallowance of Rs. 21,57,910 as indirect expenses and Rs. 96,713 as personal expenses. The company also contested the exclusion of certain incomes from the benefits of Section 80IC deductions. The Income Tax Appellate Tribunal remanded some issues back to the assessing officer for re-evaluation, influencing the final tax liability of the company.
The tribunal’s decisions highlight critical considerations in tax assessments, such as the proper allocation of expenses between units and the nature of sales eligible for deductions under tax laws. These rulings have significant implications for tax planning and compliance for businesses.
Murcury Rubber Mills’ Tax Dispute over Deductions and Disallowances, ITA 1549/DEL/2019
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform