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2019 (9) TMI 1637 - AT - Income TaxInterest u/s 244A - only contention raised that when the AO did not allow credit of TDS in A. Y. 2001-02 on this basis that corresponding income is not offered to tax in that year, the AO should have suo moto allowed credit of TDS in correct year - HELD THAT:- We find no merit in this claim because this not the case of the assessee that corresponding income was offered to tax in the same year in which TDS credit is claimed and the AO wrongly disallowed the claim of TDS credit. This is admitted position of fact that the assessee claimed TDS credit in A. Y. 2001-02 and offered corresponding income for tax in an earlier year and therefore, the delay in granting of refund is attributable to the assessee and as a consequence, interest u/s 244A is not allowable. In our considered opinion, if the TDS credit is claimed in a year in which corresponding income is not offered to tax, the AO has to disallow such claim of TDS credit in that year and it is not practically possible for the AO to allow such credit in the correct year in which corresponding income is offered to tax and it is for the assessee to point out the year in which such income is offered to tax and then the AO can allow credit of TDS in that year but in such case, delay in granting refund is attributable to the assessee and therefore, interest u/s 244A is not allowable. We therefore, decide this issue against the assessee in both years. Allowability of depreciation on lease transactions - HELD THAT:- As decided in own case that the lease transaction is sham because the assessee on the one hand pays the value of machinery and at the same time receives the equivalent amount as deposit and thus, there is no out flow of fund so as to validly make payment for purchase price. It is seen that no difference in facts is pointed out in the present year or in any other year. When, the lease transaction itself is sham as per the earlier tribunal order in assessee’s own case under similar facts, no other argument or judgment cited in the written submissions reproduced above is required to be considered. Hence, we decline to interfere in the orders of the lower authorities on this issue in all years including the present year. Amounts forfeited by the depositors in terms of the scheme approved by the High Court of Karnataka - This is by now a settled position of law that treatment in the books by the assessee is not decisive. This is also a settled position of law that taxability of a receipt cannot be on this basis that the assessee offered it for taxation. If a receipt is a capital receipt as held by Hon’ble Karnataka High Court in the judgment rendered in the case of Manipal [2014 (10) TMI 706 - KARNATAKA HIGH COURT] it cannot be taxed merely because the assessee treated it as revenue receipt or offered it for taxation. No other difference in fact is noted by CIT (A). Learned DR of the revenue also could not point out any other difference in facts. Hence, respectfully following this judgment of Hon’ble Karnataka High court, we decide this issue in favour of the assessee. MAT credit in respect of MAT paid in earlier years - HELD THAT:- It is held by CIT (A) that there is no merit in this ground because the AO adopted the tax payable under regular provisions as it was more than MAT. As per written submission reproduced by CIT (A) on page 3 of his order, it is submitted by the learned AR of the assessee that this issue may not arise as on date but it may arise in future. Hence, it is seen that the assessee wants an advance decision. In the written submissions before us also as reproduced above, it is submitted that this ground has been raised as a matter of abundant precaution. Hence, it is seen that before us also, the assessee wants an advance decision. Hence, this ground is rejected.
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