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2012 (6) TMI 831 - AT - Income TaxDisallowance of depreciation on assets taken over from Bank of Thanjavur(BOT)- Held that:- Down-loaded master detail from the official website of Registrar of Companies, clearly mention that status of M/s.BOT as dormant. It is also mentioned that corrections are to be submitted by the concerned persons, if such data is incorrect. This downloaded material cannot be considered as material evidence proving the existence of that company. These were only the master data, which could be incorrect and such master data was always subject to correction. It would not show that the M/s.BOT continued its independent existence and continued its operation despite amalgamation. - Decided against assessee. Broken period interest - Held that:- When interest received by an assessee, from transferees for broken period is included under the head ‘business income’, amounts paid by the assessee to the transferors for broken periods could not have been disallowed. Bad debts written off need to be allowed. Allowance of normal write-off of bad debts - Held that:- The issue regarding write-off of bad debts raised by assessee in its ground No.4 for Assessment Years 2004-05 and 2006-07and as ground No.3 for Assessment Year 2005-06 requires reconsideration by the Assessing Officer, in the light of judgment of the Apex Court in Catholic Syrian Bank Ltd‘s case (2012 (2) TMI 262 - SUPREME COURT OF INDIA) as held that once bad debts were written off in the books of accounts, the claims had to be allowed Disallowance made under Section 14A -Held that:- We are of the opinion that this issue requires a fresh look by Assessing Officer. Rule-8D was held to be applicable only from Assessment Year 2008-09 by Hon’ble Mumbai High Court. It was also held that even for earlier years, disallowance had to be made under Section 14A of the Act considering the facts and circumstances. We, therefore, set aside the orders and remit back to the file of Assessing Officer for consideration of this issue afresh in accordance with law. This issue thus, stands decided in favour of assessee for statistical purposes. MAT applicability - Held that:- The provisions of Sec.115JB could not be applied on the assessee. In the result, this issue stands decided in favour of assessee. Exclusion of income of assessee from its Singapore and Colombo operations -branch income of assessee at Singapore and Colombo, whether to be excluded or to be considered for only tax credits.? - Held that:- Hon’ble apex Court in the case of PV.AL. Kulandagam Chettiar (2004 (5) TMI 8 - SUPREME Court ), after studying the Double Taxation Avoidance Agreement between Govt of India & Govt. of Malaysia, held that even if a person was resident in India, once such a resident in India was deemed to be a resident of a contracting state, on account of economic and personal relationship with such contracting state, then residence in India will become irrelevant and treaty would be prevail over Sections 4 & 5. Therefore, we are of the opinion that Commissioner of Income Tax(Appeals) took a correct view that income of the foreign branches in Singapore and Columbo had to be excluded and not considered only for tax credits.
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