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2015 (10) TMI 11 - ITAT MUMBAI

2015 (10) TMI 11 - ITAT MUMBAI - TMI - Validity of re-opening of assessment u/s. 147 - addition made u/sec 2 (22)(e) - Held that:- None of the case law cited by the assessee fits to the facts and circumstances of the case in hand. In this case the additions made as deemed dividend u/s 2(22)(e) of the Act have already been confirmed by the CIT(A) in relation to base year AY 2001-02. On the date of reopening of the assessment for the year under consideration, the AO had reasonable belief that the .....

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sh that the debt, in fact, has become irrecoverable; it is enough if the bad debt is written off as irrevocable in the accounts of the assessee. In view of above observations, this issue is restored to the file of the AO to examine it a fresh and decide the same in the light of the decision of the Hon'ble Supreme Court (supra). - Decided in favour of assessee for statistical purposes.

Addition u/s 14A made on account of disallowance of expenditure incurred in relation to earning of th .....

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ft/loans taken, then presumption would arise that investments would be out of the interest free funds generated or available with the assessee. A similar view was taken by the Hon'ble Bombay High Court in the case of "HDFC Bank Ltd." [2014 (8) TMI 119 - BOMBAY HIGH COURT]. We find that the above contentions of the assessee have not been examined by the AO. Further, he is not having the benefit of going through the decisions of the Hon'ble Jurisdictional High Court on the issue at the time of mak .....

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Member The present appeal has been preferred by the assessee against the order dated 18.03.2011 of the Commissioner of Income Tax (Appeals) [(hereinafter referred to as CIT(A)] relevant to assessment year 1998-99. 2. The assessee has taken the following grounds of appeal: "1. Re-opening of Assessment u/sec 147: 1.1 The Hon'ble C.I.T. (Appeals) -12, Mumbai, erred in not deciding the ground No.2 pertaining to re-opening of assessment u/s. 147 by the ld. ITO 6(3)(1) by forming an opinion .....

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eemed dividend income u/sec 2(22)(e). 2. Disallowance of Bad-Debts written off ₹ 10,88,244/- u/sec 36(1)(vii) r.w.s. 36(2) 2.1 The ld. C.I.T. (Appeals) erred in confirming the disallowance of ₹ 10,88,244/- being Bad-Debts written off u/sec 36(1)(vii) r.w.s. 36(2) ignoring the fact that the bad debt was written off during the year but was erroneously typed as 'provision for bad Debt' in the financial statements. The ld. C.I.T. (Appeals) erred in not considering the ledger acco .....

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₹ 16,99,257/- being additional interest expenditure derived in proportion of exempted dividend income to total income ignoring the fact that the CBDT has restricted on re-opening of completed assessment on account of provision of Sec 14A vide Circular No.11 of 2001, dtd 23/07/2001 and hence no addition U/s 14A can be called for. 3.2 Without prejudice to the above, your appellant has voluntarily disallowed expenses of ₹ 13,99,528/- (interest expenditure ₹ 6,88,274/- + other exp .....

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sment are that the Income tax return for the assessment year under consideration was filed by the assessee on 20.11.1998 which was processed u/s 143(1) of the Act on 4.6.2009. The Assessing officer (hereinafter referred to as the AO) during the assessment proceedings u/s 143(3) for AY 2001-02 added the unsecured loans from the related group concerns as deemed dividend u/s 2(22)(e) of the Act which addition was further confirmed by the Ld. CIT(A). The AO further noted that the assessee company ha .....

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unal vide order dated 23.6.2008 has deleted the said additions made a u/s 2(22)(e) of the Act in relation to A.Y. 2001-02. The Ld. CIT(A) in the impugned order while relying upon the decision of the Tribunal for A.Y. 2001-02 has deleted the additions made u/s 2(22)(e) of the Act for the year under consideration also. Now the contention of the Ld.AR for the assessee has been that the ground for reopening of assessment for the year under consideration was based on the additions made as deemed divi .....

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DCIT 353 ITR 548 (Guj). 5. We have considered the submissions of the Ld. AR and have also gone through the case laws relied upon by him. In our humble view none of the case laws relied upon by the Ld. AR are applicable to the case of the assessee before us. In the case of 'connection vs. ITO' (supra) the original assessment was done u/s 143(3) of the Act. The Hon'ble High Court held that proviso to section 147 was applicable to the said case. Moreover the additions on the basis of r .....

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ting ACIT' (supra) a notification granting exemption to the assessee was withdrawn by the Govt. with retrospective effect. The AO had reopened the assessment for the technical reason of withdrawal of exemption with retrospective operation. The High Court subsequently quashed the notification of withdrawal of exemption. It was under such circumstances that the Hon'ble High Court held that the reason for reopening of the assessment did not survive. None of the above case law cited by the a .....

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ning of the assessment. This ground is accordingly dismissed. Ground No.2 6. The assessee through ground No.2 of the appeal has agitated the confirmation of the additions in relation to provision for bad debts. The Ld. AR, before us has contended that the same was not the provision but was the actual debt written off in the P & L Account. Inadvertently it was mentioned as a provision. He has further contended that the bad debts are allowable in the light of the decision of the Hon'ble Su .....

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it is enough if the bad debt is written off as irrevocable in the accounts of the assessee. In view of above observations, this issue is restored to the file of the AO to examine it a fresh and decide the same in the light of the decision of the Hon'ble Supreme Court (supra). Ground No.3 8. Vide ground No.3 the assessee has agitated the addition u/s 14A made on account of disallowance of expenditure incurred in relation to earning of the exempt income. It has been submitted that the assessee .....

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