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2015 (6) TMI 525 - AT - Income TaxAccrual of income - Addition on gain on assignment of loan portfolio - sale of portfolio - Held that:- This issue involved in the appeal of the assessee is squarely covered in favour of the Revenue and against the Assessee by the decision of Coordinate Bench of this Tribunal in assessee’s own case for the A.Y. 2009-2010 [2015 (2) TMI 937 - ITAT HYDERABAD] wherein held that at the time of sale of portfolio, there is a gain of ₹ 1.54 Crores. This amount received by assessee is in a way discounted interest on the future receivables. Since this amount is already received by assessee, question of postponing the accrual does not arise. Had assessee been accounting the interest receivables as and when accrued, without sale of the portfolio, it has to be admitted that future interest cannot be taken as income. However, when assessee bundles it and sells it as a portfolio for a discount, the amount did accrue and received on the date of entering agreement. As can be seen from the above example, out of the total amount of ₹ 2,96,16,526/- receivable in a later year, assessee discounted ₹ 1,41,74,070/- and has received an amount of ₹ 1,54,42,456/- as gain, out of the total price received of ₹ 24,33,76,256/- [that total amount ₹ 24,33,76,256 – ₹ 22,79,34,100 = 1,54,42,456]. Thus, in a way, out of the book value of ₹ 22.79 Crores of portfolio, assessee did receive ₹ 24.33 Crores thereby having the gain of ₹ 1.54 Crores. Since the transaction happened on 19th March, the entire amount is to be accounted as income on that transaction as a gain. - Decided against assessee. Disallowance of deduction u/s.35D - Held that:- Since the issue relevant to the assessee’s claim for deduction under section 35D as involved in the year under consideration is consequential to the similar issue involved in the initial year i.e., A.Y. 2007-2008 for which the appeal is pending before the Ld. CIT(A), the same may be remitted back to the Ld. CIT(A) for deciding the same afresh depending on his decision on a similar issue for the initial year. Since the learned D.R. has also not raised any objection in this regard, we remit this matter back to the Ld. CIT(A) for deciding the same afresh depending on his decision on a similar issue involved in assessee’s own case for A.Y. 2007- 2008 for which the appeal is pending with him. - Decided in favour of assessee for statistical purposes.
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