MERILYN SHIPPING REFUSES TO SINK

According to the ld. Advocates present in the court room no 6 of the Calcutta high court on 24 th june ,the present tax bench comprising of the hon’ble justice Indira banerjee and the hon’ble justice A. R Saraswati was not convinced with the reasoning of the earlier division bench’s  view in the case of  CIT vs. Crescent Export Syndicate, Order dated 03.04.2013 and also in the case of CIT vs. Md. Jakir Hossain Mondal, Order dated 4.4.2013 . In these two cases, the same High Court had taken a view contrary to the view taken by ITAT , Spl. Bench in Merilyn Shipping & Transports 146 TTJ 1 (Viz) (SB), where the Spl. Bench ITAT held  that the disallowance u/s 40(a)(ia) could be made only for the expenditure that is “payable” as on 31st March and not for the amounts that have already been “paid” during the year.

In keeping with the judicial discipline, the bench has referred the matter at hand, being ITAT 101/2013 in the case of CIT vs. Sk. Mahasin Ali to the hon’ble chief justice to constitute a larger bench for reconsidering the judgement rendered in the aforesaid two cases.