Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (10) TMI 758 - AT - Income TaxRevision u/s 263 - disallowing provision for depreciation and addition on account of broken period interest - HELD THAT:- In the instant case i.e. for the A.Y.2011-12, the ld. AO had indeed made specific enquiry during the course of assessment proceedings with regard to the aforesaid items and assessee vide reply letter dated 05/03/2015 had specifically pointed out the manner in which the said provision has been made and how it is allowable deduction for the assessee and also in view of case of DCIT vs. Bank of Behrain and Kuwait [2010 (8) TMI 578 - ITAT, MUMBAI] and also the decision of Woodward Governor India Pvt. Ltd. [2009 (4) TMI 4 - SUPREME COURT] The fact is that the reply letter dated 05/03/2015 has been filed before the ld. AO is acknowledged by the ld. AO himself in his assessment order. Further yet another reply was filed by the assessee vide letter dated 24/03/2015 furnishing the entire series wise details of mark to market losses of Equity Linked Notes (ELN). The ld. AO on examining these two replies was thoroughly satisfied with the explanation offered by the assessee and accordingly, no disallowance / addition was made in the assessment. This categorically goes to prove that thorough enquiry has been made by the ld. AO in respect of aforesaid two issues. Hence, the decision of this Tribunal in assessee’s own case for A.Y.2010-11 referred to supra would be squarely applicable to the year under consideration also. Respectfully following the same, the revision order passed u/s.263 of the Act by the ld. PCIT is hereby quashed. Appeal of the assessee is allowed.
|