Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Home Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles News Highlights
Extracts
Home List
← Previous Next →

Asst. CIT Circle-5, Ahmedabad and others Versus Raajratna Metal Industries Ltd. and others

2015 (6) TMI 647 - ITAT AHMEDABAD

Disallowance of interest under Proviso to Sec.36(1)(iii) - CIT(A) deleted addition - Held that:- AO has not brought anything on record to indicate that capital was borrowed for capital work-in-progress. This finding on fact is not rebutted by the Revenue by placing any material on record. Therefore, we do not see any infirmity in the order of the ld.CIT(A), same is hereby upheld. - Decided against revenue.

Disallowance of depreciation - CIT(A) deleted addition - Held that:- The Revenu .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

u/s.14A - investment in shares of companies other than 2 foreign subsidiary companies - Held that:- There is no dispute with regard to the fact that the provisions of Rule 8D would be applicable in the year under consideration. The ld.CIT(A) has decided this issue in accordance with Rule 8D of the IT Rules, 1962, therefore we do not see any reason to interfere with the order of the ld.CIT(A), same is hereby upheld. - Decided against assessee. - I.T.A. No.540/Ahd/2012,I.T.A. No.542/Ahd/2012 - Dat .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

olidated order for the sake of convenience. 2. First, we take up the Revenue s appeal in ITA No.540/Ahd/2012 for AY 2009-10. The Revenue has raised the following grounds of appeal:- i) The ld.CIT(A) has erred in law and on facts in deleting the interest of ₹ 3,49,522/- added under the proviso to Section 36(1)(iii) of the I.T.Act. ii) The ld.CIT(A) has erred in law and on facts in deleting the addition on account of depreciation of ₹ 13,56,853/-. iii) On the facts and circumstances of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

961 (hereinafter referred to as the Act ) was framed vide order dated 24/12/2010, thereby the Assessing Officer (AO in short) made disallowance of interest under Proviso to Sec.36(1)(iii) of the Act amounting to ₹ 3,49,522/-, disallowance by invoking the provisions of section 14A of the Act amounting to ₹ 5,01,209/- and disallowance of excess depreciation amounting to ₹ 13,56,853/-. The AO has also made addition on expenses relatable to exempt income u/s.10 (disallowance made u .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the disallowance made by invoking the provisions of section 14A of the Act. The ld.CIT(A) directed the AO to exclude the investments amounting to ₹ 1,23,58,165/- [investment of ₹ 1,22,73,180/- in the shares of ERRE INOX SPA and ₹ 84,985/- in the shares of Stainless Wire Ltd. (WOS) - foreign concerns) and confirmed the disallowance in respect of the investment of ₹ 30,43,125/-. The ld.CIT(A) followed the judgement of the Hon ble Supreme Court rendered in the case of Apoll .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

r.DR Shri Nimesh Yadav vehemently argued and submitted that the ld.CIT(A) was not justified in deleting the addition. He strongly supported the order of the AO. 4.1. On the contrary, ld.counsel for the assessee supported the order of the ld.CIT(A) and submitted that the company has sufficient interest-free funds of its own in the form of current year cash profit of ₹ 978.52 lacs (Profit After Tax of ₹ 248.25 lacs and Depreciation of ₹ 730.27 lacs) and the same has been utilized .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

provisions of proviso to section 36(1)(iii) following conditions should be fulfilled. 1. Capital Borrowed for acquiring capital assets. 2. Interest is paid in respect of capital borrowed. 3. The acquisition of assets should be for the purpose of Expansion of an existing business or profession. 4. Interest Liability may or may not be capitalized. In the instant case, the Ld.A.O. has not brought anything on record to indicate that capital was borrowed for capital work-in-progress. Secondly, no evi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

appeal is allowed. 5.1. From the above finding on fact, it revealed that the AO has not brought anything on record to indicate that capital was borrowed for capital work-in-progress. This finding on fact is not rebutted by the Revenue by placing any material on record. Therefore, we do not see any infirmity in the order of the ld.CIT(A), same is hereby upheld. Thus, this ground of Revenue s appeal is rejected. 5.2. Ground No.2 of Revenue s appeal is against deletion of addition made on account o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

that the ld.CIT(A) has recorded his finding in paras-5.2 & 5.3 which read as under:- 5.2 I have considered the rival submissions. It is seen that this issue has been decided in favour of the appellant in the earlier years. I the A.Y. 2008-09 my predecessor had allowed the appeal of the appellant on this issue. For the sake of brevity, the concluding para is reproduced as under: I have considered the submissions made by the A.R. of the appellant and the observations of the assessing officer i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

facts are identical in this year as it was in the A.Y. 2008-09, accordingly respectfully following order of my Ld.predecessor, the A.O. is directed to allow depreciation as per the appellate orders in the immediately preceding years. In view of above, this ground of appeal is allowed. 6.1. The Revenue has not brought any material on record as to how the facts in the present case are different from the facts in the earlier years. The Revenue has not placed any material on record suggesting that t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d in law and facts by confirming disallowances u/s.14A of the Act on investment in shares of companies other than 2 foreign subsidiary companies and therefore the learned AO should be directed to delete the same while computing the total income. 2. That the appellant craves liberty to add, mend, alter and delete any grounds of appeal before the final hearing. 7.1. The only effective ground No.1 is against confirmation of disallowance u/s.14A of the Act in respect of investment in shares of compa .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Forum
what is new what is new
  ↓     bird's eye view     ↓  


|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version