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2015 (1) TMI 194 - HC - Income TaxDetermination of taxable year – Taxable in year under consideration or in subsequent years - Income from Advance License Benefit Receivable, income from Pass Book scheme – Held that:- Following the decision in Commissioner of Income Tax Versus M/s Excel Industries Ltd. and Mafatlal Industries P. Ltd. [2013 (10) TMI 324 - SUPREME COURT] wherein, it is held that income from sale of Advance License Benefits is taxable only in the year in which actual sale took place – Decided in favour of assessee. Premium paid for the leasehold land – Revenue expenses or not – Held that:- Following the decision in Deputy Commissioner of Income-tax v. Sun Pharmaceuticals Ind. Ltd., [2009 (3) TMI 587 - Gujarat High Court] wherein it has been held that merely because the deed was registered, the transaction would not assume a different character - the lease rent was very nominal and by obtaining the land on lease, the capital structure of the assessee did not undergo any change - the assessee only acquired a facility to carry on business profitably by paying nominal lease rent and that the lease rent paid by the assessee to GIDC was allowable as revenue expenditure – Decided in favour of assessee. Allowability of deduction u/s 80M – Deduction of management expenses from gross dividend received – Expenses incurred by assessee or not – Held that:- However, the assessee has not shown any management expenditure or office expenditure, which was necessary for earning dividend – in CIT v. United General Trust Ltd. [1993 (2) TMI 96 - SUPREME Court] it has been held that relief u/s 80M must be allowed on net dividend after deducting proportionate management expenditure – Decided in favour of assessee. Calculation of deduction u/s 80HHC - Set off of expenditure against income – Held that:- Following the decision in ACG Associated Capsules Pvt. Ltd. v. Commissioner of Income tax, [2012 (2) TMI 101 - SUPREME COURT OF INDIA] wherein it has been held that for the purpose of Section 80HHC of the Act, it is not the entire amount received by the assessee on sale of DEPB credit but, the sale value less the face value of the DEPB that will represent profit on transfer of DEPB credit by the assessee – Decided in favour of assessee. Levy of interest u/s 234B remit back by the Tribunal – Held that:- The Tribunal relied upon CIT v. Ranchi Club Ltd. [2000 (8) TMI 79 - SUPREME Court] wherein, it was held that in the absence of any specific mention by the assessing authority in the assessment order in respect of charging interest u/s.234A and 234B, no interest could be recovered merely by way of demand notice - however, subsequently, by Finance Act, 2001, Sections 140A and 234A/B were amended retrospectively with effect from 01.04.1989 - the Tribunal remitted the matter to the AO for fresh decision - the view taken by the Tribunal is just and appropriate considering the amendment of Section 234A/B – Decided in favour of assessee.
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