Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (12) TMI 1003 - AT - Income TaxDepreciation in respect of assets given on lease by the appellant in earlier years - Held that:- We find that this issue is squarely covered in favour of assessee and against Revenue by Tribunal’s decision in assessee’s own case in earlier years. Respectfully following the Tribunal’s decision and also Hon’ble Supreme Court in the case of I.C.D.S Ltd. (2013 (1) TMI 344 - SUPREME COURT) we allow the claim of depreciation on earlier years transactions as well as in previous years transactions. This issue of assessee’s appeal is allowed. Treating the notional gain arising on securitization of lease receivables as taxable receipt - Held that:- This issue is covered against assessee and in favour of Revenue by Tribunal’s decision in assessee’s own case for AYs 2000-01 to 2003-04 [2015 (5) TMI 1068 - ITAT MUMBAI] as there is a gain to the assessee representing the difference between the amount financed and the amount shown as outstanding in the loans and advance account. The assessee deferred the said gains over a period of two years and credited ₹ 1.68 crores for A.Y. 2002-03 (Rs. 4.75 crores for A.Y. 2003-04) to the profit and loss account of the years under consideration. Since it is not the case of the assessee that the said sum represents capital receipt, learned CIT(A) concluded that the said sum should be treated as having been earned in the course of business activities carried on by the assessee and it is therefore revenue in nature. Double taxation - Held that:- The assessee stated that this issue can be remitted back to the file of the AO for verification of figures and facts and this should be taxed as the assessee itself offered income. We find that the plea of the assessee is quite reasonable and we direct the AO to allow the relief in response to double taxation of the same income. Learned CIT Departmental Representative also agreed to the proposal and stated that the issue can be remitted back to the file of the AO for verification of figures and consequentially allow relief to the assessee. Addition u/s 14A - sufficiency of own funds - As the learned Counsel for the assessee referred to the decision of Hon’ble Bombay High Court in the case of HDFC Limited [2014 (8) TMI 119 - BOMBAY HIGH COURT] wherein it is held that the presumption is in favour of assessee that in case assessee’s own interest free funds are more than investment which yielded exempt income than no disallowance under section 14A of the Act on account of interest can be made. In the present case, the AO has simply adopted formula and made disallowance under section 14A of the Act.
|