Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (1) TMI 575 - ITAT KOLKATA

2016 (1) TMI 575 - ITAT KOLKATA - TMI - Bad debts - Disallowance of deduction being excess receipt of interest shown by the appellant and assessed in earlier years - Held that:- Claim of the assessee for deduction on the ground that the claim for deduction has to be allowed as bad debt or as loss incidental to the business. We are of the view that since the claim is not being allowed on the ground that the debt in question is a non-performing assets, the decision cited by the learned DR is not r .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

will have to be applied retrospectively. Admittedly the payment of employer's contribution had been made by the Assessee on or before the due date for filing return of income. Therefore the payment made on or before the due date for filing return of income has to be allowed as deduction as per the first proviso to Sec.43B of the Act. In view of the aforesaid decision, we direct that the addition sustained by the CIT(A) should be deleted. - Decided in favour of assessee - ITA No.2967/Kol/2003 - D .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ofRs.l,39,39,304/- being excess receipt of interest shown by the appellant and assessed in earlier years. 1.1. That the Ld. CIT(A) failed to appreciate that excess interest of ₹ 1,39,39,304/- assessed to tax in earlier years was on account of Non- performing assets (NP As) and according to RBI guidelines no interest on such NP As can be charged and if already charged, such interest is to be reversed in the account. and it was this excess interest charged in earlier years which was claimed .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

gulation Act, 1949 and various rules and regulations made by RBI from time to time. In the course of assessment proceedings, the AO noticed that the assesee had claimed deduction of a sum of ₹ 1,39,39,304/-. The assessee explained that the aforesaid sum represents interest due on non performing assets. The assessee also pointed out that the aforesaid interest relates to the previous year relevant to A.Y.1999-2000. The assessee explained though the aforesaid interest ought not to have been .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

9;s own case for A.Y.1998-99. In the aforesaid order the CIT(A) has given the following reasons for not allowing the claim of the assessee. "I have carefully considered the above submission of the Ld.AR. and have perused the various supporting papers and the records of the appellant, I find that the appellant's claim is not justified. The appellant has shown excess interest income in earlier years on certain accounts, which have actualy been converted into NPAS ,according to RBI guideli .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

duction of the impugned amount can be allowed under section 37. Further, since, the above amount does not fall within the provisions of section 30 to 43D as such, the same cannot allowed as per section 29 of' the Income Tax Act., Therefore, a wrong accounting entry in respect of the. income in earlier years cannot be claimed as deduction as .expenditure in the later years when such entry is reversed in the Accounts. Accordingly this ground of appeal is dismissed." 5. Aggrieved by the or .....

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 Hon'ble Delhi High Court held on similar claim observing as follows :- "It may not be necessary to go into the validity of the reasons given by the Tribunal as in any case, the assessee was entitled to this deduction. If the income which is earlier recognized is not to be allowed to be reversed in the subsequent assessment years, in any case it is permissible for the assessee to write off such an income in the concerned assessment years when it was found that the amount was not rec .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

lowing view :- "59. The next is regarding deduction of ₹ 23600000 being unrealized interest on NPA which is reduced from the interest income. The assessee had recognized interest of ₹ 23600000/- on certain accounts during the assessment year 2005-06 the same was offered to tax also. These accounts became NPA during the assessment year 2006-07 the assessee therefore reversed interest of ₹ 2.36 crores and reduced the same from the interest income for the assessment year 2006 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

earned CIT(A) ought to have allowed the unrealized interest of ₹ 236,00,000/- on Non-Performing Assets as deduction u/s 36(1)(vii) of the Act by treating the same as bad debts written off." 6.1. The Delhi High Court held that income which was earlier recognized is not to be allowed in the subsequent year in case it is permissible for the assessee to write off such income in concerned assessment year when it was found that it was not recoverable. In this connection they have also refer .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rendered min the case of Southern Technical 320 ITR 577 (SC) wherein the Hon'ble Supreme Court took a view that provision of RBI are not pending while computing the income of the assessee. 9. We have considered the rival submissions. The decision referred to by the ld. Counsel for the assessee supports the claim of the assessee for deduction on the ground that the claim for deduction has to be allowed as bad debt or as loss incidental to the business. We are of the view that since the claim .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ontribution made after due date : It appears from Annexure-H of Tax Audit Report that the assessee during the F.Y. 1999-00 relevant to the assessment year 2000-01 made a deposit of ₹ 1,88,27,903/- towards contribution of PF by the employer after due date as prescribed in Sec.43B of the I.T.Act. On specific query vide this office letter dated 13.11.2002, the assessee admitted the fact as per submission dated 5.12.2002. Any deposit made after due date is not an admissible deduction and such .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

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

Go to Mobile Version