Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2024 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (4) TMI 606 - HC - Income TaxAddition u/s 14A r.w.r.8D - expenditure incurred on earning exempt income - Effect of section 14A amendment - ITAT deleted addition - HELD THAT:- The issue is squarely covered by an order of the Supreme Court in Essar Teleholdings Ltd [2018 (2) TMI 115 - SUPREME COURT] as held Rule 8D is prospective in operation and could not have been applied to any assessment year prior to Assessment Year 2008-09. - Decided against revenue Addition made on account of income from interest - assessee is following mercantile system of accounting were the interest income would be considered on accrual basis - ITAT deleted addition - as per revenue Tribunal has erred in granting the benefit of Section 43D of the Act to the assessee - HELD THAT:- In absence of any doubt as to the status of the assessee as a State Financial Corporation and in face of the statutory scheme allowing it to account for recovery of interest on bad debts on cash basis, primarily, there is no error seen in the order of the Tribunal having allowed the benefit to the assessee to account for interest of bad debts on cash basis. The revenue has not brought on record any material fact as may raise a genuine doubt as to the entitlement of the assessee to account for interest of bad debts on cash basis. Therefore, suggestion made by Shri Mahajan that the matter may be remitted to the Tribunal to pass appropriate order in accordance with the scheme of the Act, is declined. In absence of any basis shown to make such an order of remand, we are of the opinion that that exercise may remain purely academic and may therefore serve no real purpose. Here, we may note that the Tribunal has not recorded any independent finding in the order impugned in the present appeal. It has rather followed its earlier order inter party for the Assessment Year 2001-02. Revenue as fairly states that the revenue does not appear to have assailed that order inasmuch as despite making efforts to obtain instructions in that regard, those are not forthcoming. We find that the findings recorded by the Tribunal are findings of fact based on material evidence on record.
|