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2017 (4) TMI 400 - AT - Income TaxAdditions on a/c. of bad debt - Held that:- Issue under consideration is covered by the decision of Hon’ble Bombay High Court in the case of CIT v Shreyas S. Morakhia (2012 (3) TMI 103 - BOMBAY HIGH COURT) and CIT v. Bonanza Portfolio (2009 (8) TMI 636 - DELHI HIGH COURT). SLP dismissed by Supreme Court in case of CIT v. Bonanza Portfolio (2010 (7) TMI 1068 - SUPREME COURT). Thus we do not find any infirmity in the order of CIT(A) for deleting the disallowance on account of the bad debts. Mark to market loss - Addition of net loss on account of Vanda transaction - assessee debited the same to the P&L A/c and claimed as part of net arbitrage income which is considered as business income - Held that:- e order of the lower authorities we found that CIT(A) has relied upon his order for A.Y.2009-10 to A.Y.2010-11. The issue is covered in favour of assessee vide orders of the Hon’ble Tribunal in assessee’s own case for A.Y.2009-10 and 2010-11 as well as the decision of the Hon’ble Supreme Court in the case of CIT v. Woodward Governor [2009 (4) TMI 4 - SUPREME COURT ] .We do not find any reason to interfere in the order of CIT(A) for deleting the loss claimed under the head ‘Mark to Market Loss’. Claim of depreciation on Customer Rights - Held that:- No reason to interfere in the order of CIT(A) for allowing claim of depreciation on customer’s right as held that the purchase of clientele business was a right which could be used as a tool to carry on business and therefore eligible for depreciation on the payments made, since it falls within the expression "any other business or commercial rights of similar matter" used in section 32(1)(ii) of the Income Tax Act, 1961. Disallowance u/s.14A - Held that:- We have considered rival contentions and found that the own funds of assessee (Rs. 555.45 crores) are sufficient to cover up the value of investment (Rs. 41.07 crores) so no interest disallowing is required to be made u/ s 14A of the Act. With regard to administrative expenses, the issue is covered vide order of the Hon’ble Tribunal in assessee’s own case A.Y.s 2008-09 to 2010-11.The matter has been sent back to the file of Assessing Officer for deciding the issue in accordance with the direction given by the Hon’ble Tribunal in case of sister concern of the assessee wherein a similar working given by the assessee has been accepted by the Assessing Officer for A.Y.2009-10 to 2011-12. After going through the order of the Tribunal as well as consequential orders passed by the AO, in the case of sister concern for the A.Y.2009-10 to 2011-12, we do not find any justification for disallowance so made by the AO and confirmed by CIT(A). Accordingly AO is directed to delete the disallowance made in excess of ₹ 11.84 lakhs. Disallowance of indexed cost of acquisition on sale of shares of BSE Ltd. need to be deleted as relying on assessee's own case for A.Y.s 2008-09 to 2010-11 [2016 (3) TMI 962 - ITAT MUMBAI].
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