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2013 (2) TMI 712 - HC - Income TaxWhether the Tribunal is correct in upholding the decision of CIT(A) in deleting the addition made by the A.O. on account of expenditure incurred in earning exempt income without appreciating the fact that assessee did not demonstrate before the A.O. that the funds used for acquiring shares of LVL were its own funds and also that section 10 of the Act provides for a deduction of net income and not gross income? - Held that:- Tribunal in the impugned order upheld the finding of the CIT(A) wherein a finding of fact has been reached that the dividend earned on shares by the respondent assessee is from its investments in shares out of the respondent-assessee's own funds. Consequently, the question of invoking Section 14A of the Income Tax Act,1961 to disallow expenditure would not arise. Before the Tribunal, the revenue did not challenge the finding of fact recorded by the CIT(A) in the impugned order. In this view of the matter, we see no reason to entertain question (b). Whether the Tribunal is correct in upholding the decision of CIT(A) in directing the A.O. to accept the method followed by the assessee without considering the fact that the commission received is in nature of a fee for issuance of guarantee and is not a contingent receipt and thus not returnable at the end of guarantee period? - Held that:- Decision of the Tribunal in upholding the order of the CIT(A) is a conclusion based on a finding of fact and hence, we do not see any reason to entertain question (c). Appeal admitted on question (a) - Whether the ITAT is correct in deleting the addition made by the A.O. on account of interest paid by Indian Branch of the assessee bank to its head office and other overseas branch without considering the fact that the payments made by the branch to the Head office is considered interest and such interest is taxable under Article 13? -
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