TMI Blog2002 (10) TMI 238X X X X Extracts X X X X X X X X Extracts X X X X ..... also perused the orders passed by the tax authorities. Before we proceed to deal with each of the grounds we would, at the outset, refer to the preliminary objection taken by the learned Departmental Representative in respect of some of the grounds the stand taken being that the CIT(A) had accepted the additional evidence and decided certain issues in favour of the assessee. The learned Departmental Representative vehemently contended that the assessee had ample opportunity before the AO and the CIT(A) should not have allowed it to file the additional evidence. 3. As against this, the stand of the learned counsel for the respondent was that no additional evidence as such had been placed on record and whatever had been tendered before the CIT(A) was only in support of the stand already taken before the AO. According to the learned counsel even if one went by the assumption that some additional evidence had been placed before the CIT(A) it was a matter of record and as clearly emerging from the order of the first appellate authority that an opportunity had been given to the AO to whom such additional evidence had been forwarded and his report obtained thereto. Both the parties cite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring both the parties, considering the material on record as also the authorities cited we are of the view that the action of the CIT(A) is required to be upheld. Ground Nos. 1 and 4 in the Revenue's appeal are, therefore, rejected. 9. As regards ground No. 2 in the Revenue's appeal the brief facts are that the assessee-company purchased various items of household use such as telephones, refrigerators, music systems, etc., which in turn were provided for the use of certain employees in their houses depending upon their seniority and entitlement. The AO following the view taken in the assessments for asst. yrs. 1991-92 and 1992-93 disallowed the depreciation. 10. Before the CIT(A) it was submitted that the aforesaid arrangement of providing household goods was a part of the policy of the company and since the assets were owned and used by the assessee for purposes of its business the claim on account of depreciation was tenable. A reference was made to CBDT's Circular dt.12th Dec., 1966, dealing with the subject-matter in question. A reference was also made to the dictionary meaning of the term "furniture" and a reference was also made to r. 3 of the IT Rules. 11. In accepting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 50,000. After hearing both the parties and taking into account the facts of the case and the authorities relied upon, we are of the view that no interference is warranted in the order passed by the CIT(A) and this would mean rejection of ground No. 5. 17. As regards the last ground in the Revenue's appeal the matter was vehemently argued by both the sides canvassing their respective view points, but before we come to their arguments and our conclusions, it is necessary to set out the brief facts and these are that the assessee took over the business of Ramon Demm Ltd. pursuant to a revival and rehabilitation scheme sanctioned by the Board of Industrial and Financial Reconstruction (BIFR). As a result of the scheme the respondent-company was to take over all the liabilities of Remon Demm Ltd., which included statutory dues, such as sales-tax, excise, etc. as also liability for interest to financial institutions and banks. It is an accepted fact between the parties that BIFR vide order dt.2nd June, 1992, which falls in the previous year relevant to the assessment year under consideration, sanctioned the following concessions: "(a) Waiver of penal interest, liquidated dam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... circulars of the CBDT were also held to be inapplicable. The certificates issued by the financial institutions were also rejected on the ground that none of these confirmed that the outstanding interest whether simple or compound had been paid/discharged. According to the AO, the letters obtained by the assessee from the various financial institutions were identically worded. 22 During the course of the assessment proceedings the assessee also made an alternative claim to the extent of Rs. 2.48 crores which according to it represented actual payments during the previous year under consideration and this was without prejudice to the main claim for deduction to the tune of Rs. 5 crores and odd. The alternative claim was rejected on the ground that necessary evidence in support thereof had not been furnished. 23. Being aggrieved with the view expressed by the AO the assessee in further appeal before the CIT(A) argued at length and the submissions thereof can be summarized as under: (i) Deduction was admissible at the stage when the outstanding interest was funded/converted into a loan; (ii) The assessee had been sanctioned a fresh loan to discharge the earlier outstanding inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regard to the alternative claim on the ground that necessary evidence had not been furnished along with the return of income. In rebuttal the stand of the assessee was that the necessity to make the alternative claim came about at the. assessment stage when the AO indicated that she was not inclined to accept the original claim. The plea, in other words, was that there was no occasion for the assessee for filing the evidence at the assessment stage. 26. In considering the aforesaid submissions, the CIT(A) proceeded to decide the matter in favour of the assessee on the main ground itself without dealing with the alternative contention. His reasons are recorded as follows: "I have considered the matter. There is no dispute that the deduction on account of the interest is admissible to the appellant-company under s. 43B of the Act. The controversy is with regard to the year in which the deduction is admissible. Whether it is to be allowed in the year of funding or in the year(s) when the funded interest/converted loan is subsequently repaid. The business of Ramon Demm Ltd. was taken over by the appellant-company pursuant to a revival and rehabilitation scheme sanctioned by the B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orted the order of the AO pressing into service the decision of the Indore Bench of the Tribunal in the case of Eicher Motors Ltd. vs. CIT (1999) 63 TTJ (Ind) 640 : (1999) 69 ITD 177 (Ind). It was emphasized by the learned Departmental Representative that on identical facts the Tribunal had been pleased to uphold the action of the tax authorities in disallowing the assessee's claim with reference to provisions of s. 43B. We in fact would go to the extent of observing that the arguments of the learned Departmental Representative proceeded on lines quite identical to those advanced on behalf of the Revenue before the Indore Bench of the Tribunal. A reference was made to the meaning of the term "actual" appearing in Black's Dictionary 7th Edition. The learned Departmental Representative took us through relevant portions of the order passed by the Indore Bench to buttress the Revenue's case. As against this the learned counsel for the respondent placed on record copy of an article appearing in (1999) 156 CTR (Art.) 144 on the judgement of the Indore Bench of the Tribunal. It was emphasized by the learned counsel that a different view was possible as observed by the learned author of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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