Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (12) TMI 59 - ITAT AHMEDABADBad debts written off – Hire purchase business transaction - Held that:- Following assessee’s own case for A.Y. 2004-05 - Claim of assessee of bad debt in respect of its business of hire purchase is in favour of assessee - Decided in favour of assessee. Bad debts written off – Bill discounting and inter-corporate deposits - Held that:- Following M/s. Mafatlal Industries and Precision Fasters for bills discounting and Delhi Tribunal in the Poysha Oxgen Pvt. Ltd vs. ACIT [2007 (12) TMI 304 - ITAT DELHI] for inter-corporate deposits – The issue was restored for fresh decision. Disallowance u/s. 14A – Held that:- Unless there was proof of actual expenditure incurred by the assessee to earn the exempt income, no disallowance can be made u/s. 14A - Ld. CIT(A) has given relief to the assessee on the additional evidence produced by the assessee before him which was not before the AO - Ld. CIT(A) has not obtain the remand report on this additional evidence – The issue was restored for fresh adjudication. Diminution in value of investments – Non-performing assets – Held that:- Following TN Power Finance and Infrastructure Development Corporation Ltd vs. JCIT [2005 (10) TMI 38 - MADRAS High Court] - Merely because the Reserve Bank of India has directed the assessee to provide for non-performing assets, that direction cannot override the mandatory provisions of the Income-tax Act contained in section 36(1)(viia) which stipulate for deduction not exceeding 5 per cent, of the total income only in respect of the provision for bad and doubtful debts which are predominately revenue in nature or trade related and not for provision for non-performing assets which are of predominately capital nature – Decided against assessee. Lease income – Held that:- Following assessee’s own case for A Y. 96-97 – The issue was restored for fresh decision. Consultation fee – Held that:- Report was prepared by M/s E & Y on the directions of Gujarat Gas Company Ltd and the report was also submitted to Gujarat Gas Company Ltd - Study carried by E & Y related to amalgamation and merger for efficient and effective functioning of Gujarat Gas Company Ltd and other group companies - Since the study was commissioned by the Gujarat Gas Company Ltd for efficient and effective functioning of Gujarat Gas Company Ltd only, it cannot be said that this expenditure was incurred fully and exclusively for carrying on business of the assessee – Decided against assessee.
|