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2019 (5) TMI 2001 - AT - Income TaxMAT - Computing the book profits u/s 115JB - deductibility of the amount set apart as Debenture Redemption Reserve - HELD THAT:- On record including the decision of the co-ordinate bench of the Tribunal in assessee’s own case [2017 (6) TMI 1391 - ITAT MUMBAI] we observe that the identical issue has been decided in favour of the assessee as in the case of JSW Energy [2013 (7) TMI 192 - ITAT MUMBAI], the Tribunal was considering the deductibility of the amount set apart as Debenture Redemption Reserve for the purposes of computing the book profits u/s 115JB of the Act. After detailed discussion, it has been held that adjustment of the amount of Debenture Redemption Reserve made while computing the book profits u/s 115JB of the Act is permissible and is within the purview of the law. The decision of CIT(A) is in consonance with the aforesaid legal position and even before us, no contrary decision has been brought out by the Revenue and as a consequence, we hereby affirm the decision of CIT(A) on this aspect. Thus, the Revenue fails in its appeal. Addition u/s 68 - non-establish identity, creditworthiness of the lender and genuineness of the transaction - HELD THAT:- We observe that CIT(A) has called for a remand report from the AO in the appellate proceedings and during the remand proceedings the AO issued notice u/s 133(6) to the loan parties and were duly replied by these parties by submitting all the necessary evidences and Ld. CIT(A) on the basis of the remand report came to the conclusion that genuineness of the loan from M/s. JCPL has already been accepted in the reassessment proceedings in 2010-11 and there is no justification for treating the loan of Rs.25 lakhs from M/s. JCPL as unexplained in A.Y. 2012-13 the year under consideration and thus deleted the addition. Consequently the interest expenditure was also held to be allowable under section 36(1)(iii) of the Act. We are in agreement with the conclusion drawn by the Ld. CIT(A) as we do not find any infirmity or anomaly in the same and accordingly raised by the Revenue are dismissed.
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