TMI Blog2011 (1) TMI 1211X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. As the issues arising in these appeals are common, for the sake of convenience they were heard together and are being disposed of by way of this common order. ITA No. 5001/Mum/2004 (Assessment Year : 1998-99) The grounds of appeal for the Assessment Year 1998-99 are as follows: "In the facts and circumstances of the case and in law, the CIT ( A ) erred in ( a ) The learned CIT ( A ) erred directing the Assessing Officer to allow loss on revaluation of unmatured oil exchange contract amounting to Rs. 50 lakhs. ( b ) The learned CIT ( A ) erred in directing the Assessing Officer to allow the entire interest of Rs. 7,20,00,000 against Rs. 79,99,200 allowed by the Assessing Officer." 3. After hearing Shri Nar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held as follows: "We have heard the rival submissions in the light of maternal placed before us and precedents relied upon. We find that the issue involved in the present appeal stands covered by the orderof the Tribunal rendered in the case of State Bank of India v. Jt. CIT being ITA Nos. 1292 1293/Mum/01 dated 06.06.2002. In this case, the Tribunal has held that the gross amount of interest payable to the assessee would qualify for exemption under sub-sections ( c ) , ( f ) and ( h ) of section 10 ( 15 )( iv ) . The facts being identical, respective fully following the precedent, we decide this issue in favour of the assessee and against the Revenue." 6 . Respectfully, following the decision, we uphold the order of f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 for Assessment Year 1998-99. Consistent view has taken by us by following the decision of the Tribunal in assessee s own case on the very same issue for the Assessment Year 1997-98, we dismiss this ground of Revenue. 11. Ground No. 3 relates to the issue of allowability of payments made to employees under the Voluntary Retirement Scheme as Revenue expenditure. The first appellate authority has discussed this issue at paras 7.4 and 7.5 on pages 6 7 of its order as under : "7.4 In support of the claim for deduction the learned AR relied upon various decisions, one of them being of the Supreme Court in the case of Indian Cable Co. Ltd. v. Workman AIR 1972 SC 2195. The assessee has also relied upon the decision of the Bombay Hig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve carefully considered the submission of the assessee on this issue. It is true that the Finance Act, 2001 has introduced section 35DDA in the Income-tax Act whereby the expenditure on Voluntary Retirement Scheme is required to be amortised over a period of 5 years. However, the point to be noted is that the said new section has come into operation with effect from 01.04.2001 and hence applicable from Assessment Year 2001-2. Before the introduction of the new provision, the issue of allowability of expenditure on VRS will have to be decided as per the position of law prevailing at the relevant time. As pointed out by the learned AR, the apex court in the case of Indian Cable Co. Ltd. v. Their Workmen ( AIR 1972 SC 2195 ) has held payme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s ground of the Revenue. 13. Last ground is against the disallowance made on account of bad debts. 14. After hearing the rival contentions, we find that the first appellate authority has discussed this issue at paras 10.2 to 10.4 and has held as under: "10.2 The assessee had claimed deduction for bad debts of Rs. 1,84,34,398. In computing the total income the Assessing Officer has allowed deduction of Rs. 1,54,71,377 after setting off closing provision for bad and doubtful debts of Rs. 29,63,021. 10.3 It has been submitted that closing provision of Rs. 29,63,021 made u/s.36 ( 1 )( viia ) ought not to have been set off against the amount of Rs. 1,84,34,398. In support of the above contention, the assessee has relied up ..... X X X X Extracts X X X X X X X X Extracts X X X X
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