Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (7) TMI 1378 - AT - Income TaxDisallowance u/s 14A - claim of interest - HELD THAT:- Both the parties submitted that this issue is squarely covered in assessee’s own case by Co-ordinate Bench of this Tribunal in [2020 (10) TMI 1021 - ITAT AHMEDABAD] wherein the Hon’ble ITAT remanded the matter back to the Assessing Officer for fresh adjudication to examine the facts and figures of the case in the light of our observations made above in order to arrive at a final conclusion as to whether disallowance u/s 14A is to be made and if so, then the amount thereof which in no case should exceed the exempted income earned by assessee during the year under appeal. Nature of expenses - Guarantee fees paid to Govt. of Gujarat related to capital work-in-progress which needs to be capitalized - assessee submitted that the certificate of utilization was already furnished before the Ld. CIT(A) stating that the loans on which guarantee fees was paid were utilized for construction of power plant and there was no capital work-in-progress in respect of such loans borrowed - HELD THAT:- As decided in own case in [2020 (10) TMI 1021 - ITAT AHMEDABAD] wherein CIT(A) directed to verify the certificate filed during the appellate proceedings that the loans on which guarantee fees was paid were utilized for construction of power plants at that time and there was no capital work-in-progress in respect of such loans during the Financial Year 2014-15. Both the assessee counsel as well as the Ld. D.R. could not place on record what is the giving effect order passed by the A.O. thereafter, pursuant to the direction of the Ld. CIT(A). Therefore this ground no. 2 is also set aside to the Assessing Officer for proper verification and adjudication. Disallowance of prior period expenses and prior period income - HELD THAT:- Respectfully following the order passed by the Coordinate Bench of this Tribunal for A.Ys. 2010-11 & 2011-12 we are disposing of these grounds by setting aside the issue to the file of the Ld. AO for de novo adjudication by giving an opportunity of being heard to the assessee and upon considering the evidence which the assessee may choose to file at the time of hearing of the case Addition being 15% of capital grant received by the assessee - HELD THAT:- This issue is now in settled in favour of the assessee by the Hon’ble High Court of Gujarat in assessee’s own case for A.Y. 2010-11 [2020 (3) TMI 232 - GUJARAT HIGH COURT] we are in agreement with the concurrent finding of fact arrived at by the CIT(A) as well as the Tribunal as the assessee did not acquire any fixed assets on which depreciation has been claimed, and therefore, grants cannot be reduced from cost of fixed asset of the assessee. Therefore, appeal stands dismissed. Correct head of income - treatment of interest income and miscellaneous income “business income” or “income from other sources” - HELD THAT:- Respectfully following the Jurisdictional High Court judgment in [2020 (3) TMI 232 - GUJARAT HIGH COURT] which has confirmed Tribunal’s decision in assessee’s own case, we hereby held that the interest income and miscellaneous income earned by the assessee were directly related to the business of the assessee and assessable as “business income” only and not as “income from other sources”. Thus the Ground raised by the Revenue is hereby rejected. Disallowance u/s 14A r.w.r. 8D while determining the income under the provisions of MAT - HELD THAT:- Ground raised by the Revenue to include the disallowance u/s. 14A for the purpose of computation of book profit u/s. 115JB of the Act is hereby deleted.
|