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2013 (8) TMI 1000 - AT - Income TaxExpenses incurred on the issuance of such FCCBs - Held that:- expenditure on the issue of convertible debentures is admissible. We find that there is no qualitative difference between the issuance of debentures or bonds. Both fall in the realm of loan. In the light of these precedents, we are of the considered opinion that the assessee deserves deduction for this amount Denial of deduction u/s 80-IB on duty drawback / DEPB - Held that:- Tribunal in assessee’s own case has denied similar deduction on DEPB in the past. This position was fairly admitted by the learned AR as well. However it was argued that the receipt of duty drawback to the extent of actual expenses should be allowed. In support of this contention the learned AR relied on some order passed by the Ahmedabad Bench of the Tribunal. We are unable to accept this contention in view of the direct judgment of the Hon’ble Supreme Court in Liberty India v. CIT [2009 (8) TMI 63 - SUPREME COURT ] in which it has been held that duty drawback / DEPB are not derived from industrial undertaking and hence no deduction is available u/ss 80-I, 80-IA and 80-IB. Denial of deduction u/s 80-IB on interest income on subsidy received under the Textile Upgradation Fund - Held that:- The authorities below did not allow deduction u/s 80-IB on subsidy received under TUF. We are convinced with the view point of the authorities below that such subsidy received on account of interest on loan borrowed for acquisition of plant and machinery cannot be considered as an income derived from industrial undertaking. Interest under TUF scheme - revenue or capital receipt - Held that:- We find that there being a pure question of law as to whether such subsidy is a revenue or a capital receipt, can be taken up for consideration before the Tribunal for the first time. Since there is no adjudication by the authorities below on this point, we are of the considered opinion that the ends of justice would meet adequately if the matter is restored to the file of Assessing Officer for examination and evaluation of this contention.
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