Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (11) TMI 166 - AT - Income TaxAddition towards Difference on Account of Broken Period Interest - Held that:- The interest in question on account of relevant Government securities can be brought to tax in the hands of the assessee only on the relevant due dates when it could be said to have accrued to the assessee - Following CIT vs. Bank of Rajastan Ltd.[ 2010 (4) TMI 217 - BOMBAY HIGH COURT] held while upholding the Tribunal’s order in deleting the similar addition made on account of interest accrued but not realized on the Government securities that interest on Government securities could be said to accrue only when it becomes due and, therefore, there should not be a charge to such income until such time that it becomes due - in the case of Government securities, interest accrues only on the coupon dates and not on day to day basis - the addition made by the AO and confirmed by the learned CIT(Appeals) on this issue was deleted and allowing the assessee’s appeal – Decided in favour of Assessee. Determination of Head of Income - under which interest on income-tax refund was chargeable to tax whether “income from other sources” or “profits and gains of business or profession” – Held that:- The interest on income-tax refund received by the assessee as income from other sources and not profits and gains of business or profession - The source of such interest income being the income-tax refund arising from the income-tax proceedings, the same cannot be treated as business income of the assessee - the activity resulting into income-tax refund as well as interest payable thereon as per the provisions of section 244A of the Income-tax Act, 1961 cannot form part of business activity of the assessee and the same cannot even be treated as an activity incidental to the business of the assessee so as to say that such interest constitutes its business income – Decided against the Assessee. Determination of the Head of Income - under which miscellaneous income earned by the assessee is chargeable to tax whether “income from other sources” or “profits & gains of business or profession” - Held that:- Miscellaneous income earned by the assessee as the income from other sources and not business income was upheld by the learned CIT(Appeals) observing that the said income had no link with any organized and regular business activity of the assessee - order of the CIT(Appeals) was set aside on this issue and restore the matter to the file of the AO to decide the same afresh after ascertaining the exact nature of non banking assets claimed to be held by the assessee in the normal course of its banking business – Decided against the Assessee. Additions made u/s 115JB - while computing its book profit u/s 115JB on account of the provision for doubtful debts – Held that:- Following Krung Thai Bank PCL vs. Joint Director of Income-tax [2010 (9) TMI 18 - ITAT, MUMBAI ] - the provisions of section 115JB cannot be applied in the case of the assessee being a banking company and there was thus no question of computation of book profit u/s 115JB or any addition to be made for this purpose - in the case of banking companies, the provisions of Schedule VI to the Companies Act, however, were not applicable in view of exemption set out under proviso to section 211(2) of the Companies Act and since the final accounts of the banking companies are required to be prepared in accordance with the provision of the Banking Regulation Act, the provisions of section 115JB cannot be applied to the case of a banking company - the question of computation of book profit under the said provisions or making any addition for this purpose does not arise at all - The addition made by the AO and confirmed by the learned CIT(Appeals) on account of provision for doubtful debts while computing the book profit u/s 115JB was deleted.
|