M. Visvesvaraya Industrial Research and Development Centre v. Commissioner of Income-Tax (Appeals)

Parties Involved

Facts Summary

The assessee, M. Visvesvaraya Industrial Research and Development Centre, filed an appeal against the order of the Commissioner of Income-tax (Appeals) for the assessment year 2021-22. The assessee claimed a deduction for advance rent which was received and offered to tax in the assessment years 1989-90 and 1990-91. The assessee claimed 1/60th of the advance rent as a deduction in the current year to avoid double taxation. The Commissioner of Income-tax (Appeals) disallowed the deduction, leading to the appeal. The assessee also raised several other grounds of appeal including issues related to disallowance under Section 80G, denial of TDS credit, violation of principles of natural justice, and initiation of penalty proceedings.…

Legal Issues

• 1. Disallowance of Advance Rent Deduction
• 2. CIT(A) failed to exercise co-terminus powers under Section 251
• 3. Principle of Consistency – Deduction accepted in preceding years
• 4. Mischaracterization of claim as expenditure under Section 37(1)
• 5. Disallowance under Section 80G of 12,500/-
• 6. Denial of TDS Credit of 3,53,347/-

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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