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2014 (10) TMI 1002 - GUJARAT HIGH COURTDisallowance of interest expenses u/s 14A - HELD THAT:- Conclusion arrived at by the Tribunal is based upon a finding of fact recorded by it after appreciating the evidence on record. On behalf of the appellant, nothing has been pointed out to dislodge the finding of fact recorded by the Tribunal, nor is it the case of the appellant that the Tribunal has taken into consideration any irrelevant material or that any relevant material has been ignored. Under the circumstances, in the absence of any perversity in the finding of fact recorded by the Tribunal, the same does not give raise to any question of law. The said ground of appeal is, therefore, rejected. Disallowance of additional depreciation u/s 32(1)(iia) - HELD THAT:- As submitted that as on 31.03.2002, the company had no installed capacity in respect of manufacturing of parts and therefore, the manufacturing in the current year may be considered as 100% increase in installed capacity in respect of manufacturing of parts. The Tribunal, in the impugned order, has concurred with the above findings of fact recorded by the Commissioner (Appeals) while upholding the deletion. Even before this court, on behalf of the revenue, nothing has been pointed out to controvert the concurrent findings of fact recorded by the Tribunal. Under the circumstances, the conclusion arrived at by the Tribunal being based upon concurrent findings of fact after appreciation of the evidence on record, does not give rise to any question of law. Disallowance of royalty - recurring expenditure payable on the basis of sales - HELD THAT:- Tribunal observed that since it was a recurring expenditure payable on the basis of sales and the assessee has not acquired any capital asset or permanent right, the payment of royalty is allowable as business expenditure. On behalf of the revenue nothing has been pointed out to controvert the findings of fact recorded by the Tribunal. Under the circumstances, the conclusion arrived at by the Tribunal being based upon findings of the fact recorded after appreciating the evidence on record, in the absence of any perversity being pointed out therein, does not give rise to any question of law. The said ground of appeal is also rejected. Addition on account of arm's length price in respect of sale of material to associated concern - HELD THAT:- After recording the explanation given on behalf of the assessee, viz., that the transactions considered by the Assessing Officer are not substantial as compared to the volume of the transactions, the Tribunal further found that in most of the transactions, the assessee had earned higher sales price and in totality, the assessee had gained higher prices as was seen from the paper book. On behalf of the revenue nothing was pointed out to controvert the above facts by pointing out any material to the contrary. The conclusion arrived at by the Tribunal, thus being based upon concurrent findings of fact, does not give rise to any question of law. Resultantly the said ground of appeal is also rejected. MAT - Adjustment for the purpose of computation of the book profit under section 115JB - HELD THAT:- Tribunal has merely applied the decision of the jurisdictional High Court to the facts of the case. Under the circumstances, the said ground of appeal does not give rise to any question of law and is, accordingly, rejected. ADMIT. The following substantial questions of law arise for consideration: (1) Whether the Income Tax Appellate Tribunal has substantially erred in upholding the deletion of disallowance under section 14A of the Act of ₹ 13,44,076/while computing the book profit under section 115JB of the Income Tax Act, 1961 ? (2) Whether the Income Tax Appellate Tribunal has substantially erred in upholding the deletion of addition of ₹ 44,74,000/being provision for doubtful debts, while computing the book profit under section 115JB of the Income Tax Act, 1961 ?' (3) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal has erred in upholding the deletion of addition of ₹ 21,74,000/being provision for warranty, while computing the book profit under section 115JB of the Income Tax Act, 1961 ?”
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