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2019 (4) TMI 370 - HC - Income TaxAllowability of redemption premium on debentures - Year of maturity or spared over of life of debenture - Whether discount of debenture is equivalent to premium on debenture - HELD THAT:- Liability already incurred in the case of debentures issued at a discount for making necessary funds available for utilization during the entire period covered by the debentures has been highlighted in the above verdict as well, to give exactly similar application for the issuance of debentures as well. It is not a judgment to support the case projected by the assessee and to sustain the relief granted by the Tribunal. As decided in MADRAS INDUSTRIAL INVESTMENT CORPORATION LIMITED VERSUS CIT [1997 (4) TMI 5 - SUPREME COURT] liability incurred by the assessee to discharge the liability covered by the debentures at premium is in the year of issuance and this, naturally, has to be spread over the period covered by debentures. The assessee is not correct in saying that it is a liability which would happen only on maturity of debentures. The liability is certain and is already undertaken; quantum of which is also certain and known. By virtue of this, the extent of loss suffered has to be applied in respect of each year covered by the debentures, to an appropriate extent. We are of the view that the Tribunal went wrong in passing Annexure C order, upsetting Annexures A and B orders passed by the Assessing Officer and the CIT [Appeals]. Delayed payment of employees and employer's contribution to PF and ESIC - “due date” - HELD THAT:- The gist of the finding and declaration of the law is to the effect that the law laid down by the Supreme Court [granting the benefit of reduction] could be claimed only in respect of Employer's contribution and not applicable in the case of Employee's contribution. This vital distinction has been carved out by the Division Bench of this Court in [2015 (9) TMI 560 - KERALA HIGH COURT]. We are in full agreement with the view expressed by the Division Bench and we answer the substantial question of law to the said extent in favour of the Revenue and against the Assessee, holding that the Employees' Contribution requires to be disallowed. Allowance of 80IA deduction from gross total income - HELD THAT:- As per Annexure C order, caused the matter to be reconsidered by the Assessing Officer, by ordering remand. It is pointed out that, after the remand, the Assessing Officer virtually reiterated the stand taken earlier and it was answered against the assessee. There is no case for the assessee that the matter has been taken up any further and hence it has attained finality. As it stands so, there is no substantial question of law in relation to the said issue.
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