Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (5) TMI 600 - AT - Income TaxDisallowance u/s 35D - assessee is not an industrial undertaking as it is dealing in the business of finance and leasing - Held that:- This is a recurring issue in the case of the assessee coming from the earlier years. In the A.Y. 1991-92, the Tribunal has set aside this issue to the file of the AO observing that the issue as to whether or not the activities of the assessee amounted to the assessee being an industrial undertaking has not been examined at all either by the Assessing Officer or the learned CIT(A). The Assessing Officer simply assumed that the assessee has not an industrial undertaking or that there was no extension of an industrial undertaking. The same course has been followed by the learned CIT(A). The assessee has also not relied upon any specific material produced before the authorities below in this context. Thus consistent with the view taken in the earlier years we also set aside this issue to the file to the AO with the similar directions. - Decided in favour of assessee for statistical purposes. Disallowance u/s 14A - Assessee claimed deduction u/s 10(23)G on gross basis, whereas the AO held that in view of insertion of section 14A w.r.e.f. 01.04.1962 only the net income has to be included for the purpose of deduction against the gross interest and is to be reduced from the total income - Held that:- From the perusal of the accounts, it is prima facie seen that assessee’s net worth including reserve and surplus is more than the average investments. In such a situation, the applicability of decision of the Hon’ble Bombay High Court in the case of HDFC Bank Ltd. (2014 (8) TMI 119 - BOMBAY HIGH COURT) and Reliance Utilities and Power Ltd. ( 2009 (1) TMI 4 - HIGH COURT BOMBAY) needs to be considered. Since this aspect has not been looked into either by the AO or by the Ld. CIT(A), therefore, we are of the opinion that this matter should be restored back to the file of the AO to examine this contention of the assessee - Decided in favour of assessee for statistical purposes. Disallowance u/s 14A while computing the book profit u/s 115JA - Held that:- This issue had also come up for consideration before the Tribunal in assessee’s own case wherein after taking note of the decision of Hon’ble Delhi High Court in the case of CIT Vs. GOETZ India Ltd. [ 2013 (12) TMI 607 - DELHI HIGH COURT ] held that the amount disallowance u/s 14A under the normal provisions of the act is required to be added while computing the book profit u/s 115JA, has restored the matter to the file of the AO. Accordingly, we also restore this matter to the file of the AO, as the issue of disallowance u/s 14A has already been set aside to the AO. - Decided in favour of assessee for statistical purposes. Disallowance of club expenses - CIT(A) deleted the disallowance - Held that:- This issue too has been decided in favour of the assessee by the Tribunal after relying upon the decision of OTIS Elevator, reported in [1991 (4) TMI 53 - BOMBAY High Court ]. In the A.Y. 2002-03, the Tribunal following the decision of Hon’ble Supreme Court in the United Glass Mgf. [2012 (9) TMI 914 - SUPREME COURT] has held that, club membership fee for employees incurred by the assessee is allowable u/s 37(1). Accordingly, we hold that such expenses are allowable as business expenditure, which has rightly been deleted by the Ld. CIT(A). However, the order by the Revenue authorities do not indicate if any part of the impugned expenditure includes expenditure by way of entrance fees, which, where so, would assume the character of a capital expenditure, inadmissible u/s 37(1). - Decided in favour of assessee. Deduction of interest u/s 36(1)(iii) - CIT(A) allowed the claim - Held that:- As consistent with the precedence in assessee’s own case and also the fact that similar interest claim on the same borrowed funds have been held to be allowable u/s 36(1)(iii), we uphold the order of the Ld. CIT(A). - Decided in favour of assessee. Disallowance of depreciation on leased assets - CIT(A) allowed the claim - Held that:- it is an undisputed finding of fact that, the assets has been leased under operating lease and such lease transaction have been found to be genuine transaction. In such a case, the claim of depreciation on these assets is to be allowed in view of the decision of Hon’ble Supreme Court in the case of ICDS Ltd.[2013 (1) TMI 344 - SUPREME COURT] This view has been reiterated by the Tribunal in all the earlier years and also in the subsequent years. If depreciation has been allowed on the lease assets in the earlier years, then in this year same depreciation cannot be disallowed on the WDV of the leased assets. - Decided in favour of assessee.
|