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2018 (8) TMI 1250 - AT - Income TaxDepreciation claim on leased assets u/s 32 - Held that:- following the decision for earlier year, claim of depreciation allowed, Decided in favor of assessee. Disallowance u/s 14A - Held that:- when own funds in the form of share capital and reserves is in excess of amount invested in shares and securities which yielded exempt income, then no disallowance can be made towards interest expenditure u/s 14A of the Act. Claim of bad debts - Any amount of loan outstanding in respect of bill discounting - money lent in the ordinary course of business of banking or money lending - fulfilling the conditions prescribed u/s 36(1)(iii) and 36(2) - Held that:- The CIT(A), after considering relevant submissions of the assessee has rightly deleted addition made by the AO. - Decided against the revenue. Higher rate of depreciation @40% instead of 25% - assets being motor lorries, motor buses and motor taxis - Held that:- leasing out of the trucks by the assessee to others for consideration amounts to running the same on hire and will entitle to claim for higher depreciation. - Claim of the assessee allowed. Addition of late payment compensation charges on non performing assets. - the assessee is following method of accounting whereby it is accounting interest and late payment charges on NPAs on accrual basis; however, for the purpose of taxation, the same is considered on receipt basis - Held that:- AO has made addition towards late payment compensation charges on accrual basis and also made similar addition on said charges on receipt basis in the subsequent financial years. Since we have already directed the AO to make addition towards late payment compensation charges on receipt basis in the year of receipt of such charges, addition made on accrual basis in the impugned assessment year is directed to be deleted. However, the fact with regard to the claim of the assessee that it has offered to tax such charges on receipt basis in AY 2002-03 are not clear from the orders of the lower authorities. - Mattered remanded back for verification. Decided partly in favor of assessee.
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