Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2019 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (9) TMI 353 - MADRAS HIGH COURTAppropriate method of income recognition in hire purchase transaction - internal rate return (IRR) method OR Even Spread Method (ESM) - HELD THAT:- As decided in own case [2019 (3) TMI 1068 - MADRAS HIGH COURT] referring to decision of Commissioner of Income Tax Vs. Ashok Leyland Finance Ltd. [2012 (7) TMI 156 - MADRAS HIGH COURT] and Shri Chakra Financial Services Ltd. Vs Commissioner of Income Tax [2012 (5) TMI 70 - ANDHRA PRADESH HIGH COURT] upheld the taxability with regard to interest income on EMI method, which has been consistently followed, there is no reason to take a different view in the matter for the present Assessment years, in this case. - Decided in favour of assessee. Provision made in the earlier years in respect of Non Performing Assets which was reversed during the current assessment year - HELD THAT:- What is required to be seen is, for the assessment years under consideration, whether the provisions were allowed as deduction in the respective assessment years. Therefore, we are of the considered view that the matter requires fresh consideration by the Assessing Officer on this aspect. For the above reasons, we are of the view that the matter should be remanded back to the Assessing Officer, who will take a fresh decision on the merits of this issue. In the result, this appeal is allowed and the matter is remanded back to Assessing Officer to take a fresh decision in the matter noting the factual and legal position
|