Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 2739 - AT - Income TaxDisallowance of Interest in respect of advances to companies/other concerns - AO noticed that the assessee has not charged interest on the loans given to subsidiary and other companies - Held that:- Tribunal in the assessee’s own case for the assessment years 1991-92 to 1998-99, AY 2003-04 and the Tribunal has restored this issue to the file of AO for fresh adjudication following the precedent laid down by the Hon’ble Apex Court in S.A.Builders [2006 (12) TMI 82 - SUPREME COURT]. Therefore, this being identical issue, the same view may be taken as taken earlier by this Tribunal. Disallowance of balance 4.5th deferred revenue expenditure in the next four years in accordance with the provisions of section 35DDA - Held that:- An identical issue had come up before this Tribunal in the assessee’s own case for the assessment year 1998-99 and the Tribunal following the decision of jurisdictional High Court in Bhore Industries Ltd [2003 (2) TMI 20 - BOMBAY HIGH COURT] allowed the claim of the assessee. Disallowance of interest on securities - Held that:- Similar issue had come up before the Tribunal and the Tribunal following the decision rendered in the case of Jamshri Rajitsinghji Spinning and Weaving Mills Limited V/s Inspecting Assistant Commissioner [1991 (12) TMI 83 - ITAT BOMBAY-A] has decided this issue in favour of the assessee. The facts being the same and consistent with the view so take by this Tribunal in earlier year, we allow the claim of the assessee for this year too. Addition being pooja expenses - Held that:- This is an allowable expenditure. Accordingly, we allow the claim of the assessee. Payment to relatives of deceased employees - Held that:- We are of the considered opinion that the issue raised by the assessee in these grounds stands covered in favour of the assessee. To maintain consistency with the decision taken by the Tribunal in earlier years, we allow taken by the assessee for this year also and direct the AO to allow deduction. Reduce the claim of depreciation on total scrap sales - Held that:- We find that the assessee has claimed depreciation on total scrap sales which comprises different type of the assets. The assessee failed to produce value of each assets on which it claimed depreciation. Therefore, this facts needs to be verified to come to an exact price of each assets and depreciation therefore, respectfully following the Tribunal orders and citation relied upon by the assessee. We set aside the order of the ld. CIT(A) and restore this issue to the file of the AO for fresh application of mind. Accordingly, Grounds allowed for statistical purposes. Expenses incurred by the assessee in respect of cloth coupons issued to the shareholders - expenses incurred is wholly and fully for the purposes of business. Setting off the expenses against dividend income - Held that:- In the present case, the assessee neither before the AO nor the ld.CIT(A) or the Tribunal produced any documents how the assessee is eligible for deduction of the expenditures incurred for earning dividend income. We find that the ld. CIT(A) restricted the claim to 50%. Therefore, we are of the considered opinion, that this facts requires details investigation and verification at the level of AO to determine the exact expenditure incurred by the Assessee. The AO is directed to follow the decision rendered by the Hon’ble High Court in Godrej & Boyce Mfg. Co. Ltd (2010 (8) TMI 77 - BOMBAY HIGH COURT). Disallowance of excess expenses incurred towards repairs and maintenance of house property - Held that:- Tribunal earlier in the assessee’s own case decided this issue against the assessee. The ld. AR could not produce any material to compel us to come to the different conclusion as taken by the Tribunal earlier - decided against assessee.
|