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2018 (12) TMI 310 - ITAT AHMEDABADDisallowance on account of interest expenses on the diversion of interest bearing loans to the associated concerns - Held that:- As decided in this is not a sound accounting policy as at outset it should have been recognized the same as income on accrual basis and thereafter would have given the deduction of claim of bad debt which the assessee failed in these years. Further, when we visualize this situation as a whole traveling from three assessment years, then, it is observed that interest income was recognized on accrual basis and thereafter claimed as a bad debt of its non-realization, this has been allowed by ld. CIT(A). If we remit the issue to the file to assessing officer in subsequent years by holding that income is to be recognized on accrual basis and thereafter, it is to be claimed as bad debt whether allowable or not, then, to our mind, it will be an academic and futile exercise because in reality assessee has not received any interest income from its sister concern. It is to be recognized that in all the aforesaid three years the income from interest on accrual basis remained unrecoverable which was allowed as a bad debt. Thus, in order to avoid multiplicity of the proceedings, we allow the appeal of the assessee on this issue accordingly. Claim of brought forward and set off of unabsorbed business losses and depreciation - Held that:- As decided in assessee's own case CIT(A) has directed the assessing officer to determine the claim of brought forward and set off of unabsorbed business loss for assessment year 2008-09 after giving effect to the appellate order. We restore this matter to the file of assessing officer to decide it afresh after examination of the claim of the assessee as per law
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