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2021 (2) TMI 630 - AT - Income TaxAddition on account of Investments written off - HELD THAT:- In the earlier years, the matter further travelled to Hon’ble High Court of Delhi wherein the Hon’ble Court concurred with the view taken by the revenue. The ld. CIT DR explained in detail about the issue and the order of the Hon’ble Jurisdictional High Court as held contention of the Revenue is that contradictory pleas have been taken by the Assessee before the ITAT in the appeal for the AY 1990-91 where, on the issue of write off of investments, it was contended that since Rule 5(b) had been omitted, no exemption has been provided in respect of the profits earned and that since they were chargeable to tax, the losses, if any, were required to be allowed as a deduction. In the written note of submissions filed on behalf of the Assessee, it is stated that: "When the petitioner is availing the non-taxation of its profits from sale of investments it is also not claiming the loss suffered on these investments. The AO has not only taxed the profits on sale of investment but has also disallowed the losses." (emphasis supplied) Therefore, even the Assessee acknowledges that if it succeeds, as it has, in its plea that the profit from sale/redemption of investments must be exempt from tax, then it cannot seek deduction as a result of losses on the write off of such investments. Decided n favour of the Revenue. Addition on account of accrued interest on loans, bonds and debentures - assessee is a public sector undertaking of Government of India, conducting the business of non-life insurance for large projects, motor car, health, medi-claim and for other products and establishments - HELD THAT:- As decided in own case assessee company had rightly not recognised an amount as income for the years as per its accounting policy and as per policy issued by the Insurance Regulatory Development Authority (IRDA). So, finding no illegality or perversity in the findings returned by the ld. CIT (A), ground no.1 is determined against the Revenue. Addition on account Guest House - HELD THAT:- Following the decision rendered by the coordinate Bench of the Tribunal, we are of the considered view that when the expenditure incurred by the assessee company for maintenance of company’ s own guest houses, the same is covered u/s 30(a) of the Act and hence, we decline to interfere with the order of the ld. CIT (A).
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