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2019 (6) TMI 1006 - HC - Income TaxDisallowance u/s.14A on account of administrative expenses - HELD THAT:- In the present case, it is required to be noted that in the earlier years, the assessee was also having mixed funds and still considering the fact that the assessee was already having sufficient surplus interest free funds, the Division Bench of this Court has held that the disallowance under Section 14A is not permissible. At the cost of repetition, it is observed that the said decision has attained finality between the parties. Not only that, but the Department has followed the same in the subsequent assessment years also. Considering all, it cannot be said that the Tribunal has committed any error in deleting the disallowance made by the AO u/s 14A. See GUJARAT STATE FERTILIZERS AND CHEMICALS LTD [2018 (8) TMI 922 - GUJARAT HIGH COURT]. Set off of loss incurred on sale of fertilizers bonds - treating it as business loss and blatantly ignoring the fact that the fertilizer bonds subscribed to by the assessee falls within the bracket of section 2(14) - Whether sale of fertilizer bonds is not allowable as business loss and is to be instead treated as capital loss? - HELD THAT:- Proposed question is concerned, the same is also covered by the findings recorded by the Co-ordinate Bench in para 17 [2018 (8) TMI 922 - GUJARAT HIGH COURT] of its judgement wherein it was confirmed the finding of tribunal that loss of sale of fertilizer bond is business loss It transpires from the records that due to cash crunch Government of India at a certain point of time discharged its dues of paying the subsidy by replacing cash/cheque with the fertilizer bonds. These bonds are saleable in the open market and the prices of such bonds are varying. Against the subsidy income duly credited in the profit and loss account, assessee received fertilizer bonds. When these bonds were sold in the open market it fetched less value than the value at which they were given to the assessee. This gave rise to a loss which has been claimed as business loss. - appeal of revenue is dismissed
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