Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Forum Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database More...
Extracts
Home List
← Previous Next →

Allahabad Bank Versus A.C.I.T., Circle-6, Kolkata

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 relevant. Thus we hold that the claim 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

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 - Dated:- 9-12-2015 - Shri N.V.Vasudevan, J .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 as deduction. 1.2. That the Ld. CIT(A) w .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 treated as income of the A.Y.1999-2000 w .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

resaid 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 guidelines and that according to the RBI Guidel .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

lowed 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 order of CIT(A) the assessee has raised th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n 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 recoverable. Reference in this connection c .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

arding 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 2006-07. The same was disallowed by the AO a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 referred to the decision of the Apex Court in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ical 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 is not being allowed on the ground that .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ears 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 claim is disallowed. 12. On appeal by th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

Highlight: Notification regarding GST rate for branded cereal, pulses and flour

News: Notification regarding GST rate for branded cereal, pulses and flour

Highlight: Anti-dumping duty on import of bus/truck tyres from China

Highlight: Cabinet approves Extension of time period of the Scheme "Special Industry Initiative for J&K" (Sll J&K) - Udaan

Highlight: Non-payment of service tax - maintenance and repair charges - appellants had knowingly and deliberately shown the repair charges as job work charges to mislead about their taxability - demand confirmed.

Highlight: BAS - execution of the project of smart card for vehicle registration – implementing the SOC-VRC project - The fact that the Government has outsourced some part of the work and paid certain consideration for such outsourced work, does not make the activity subject to service tax.

Forum: Input tax credit

Forum: Cess paid instead of SGST

Forum: Excise duty credit on finished stock at additional place of business.

Circular: Amendments in Hand Book of Procedures 2015-20 –reg.

News: Cabinet approves Extension of time period of the Scheme "Special Industry Initiative for J&K" (Sll J&K) - Udaan

Highlight: Constitution of National Anti-profiteering Authority (NAA) under GST-reg. - Trade Notice

Highlight: Amendments in Hand Book of Procedures 2015-20 –reg. - Various amendments are made in Chapter-4 of Hand Book of Procedures 2015-2020.

Forum: GST rates on mobile recharge business

Circular: Constitution of National Anti-profiteering Authority (NAA) under GST-reg.

Forum: import purchase

Highlight: Sharing of expenses - BAS - promotion of business of group companies - sharing of expenditure for common facilities cannot be treated as service by one to another in such arrangement.

News: RBI Reference Rate for US $

Forum: 3B mistake

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

Circular: Certain Clarifications sought on Construction Services provided in the Real Estate Sector – reg.

News: Anti-dumping duty on import of bus/truck tyres from China

News: Fast-track GST refund, else ₹ 65K cr may be stuck: Exporters

Highlight: It is open to the Settlement Commission to use best judgment in arrival of the figure. Nonetheless it has to explain the manner in which the best judgment figure has been arrived at by the Settlement Commission - HC

Highlight: Deemed dividend u/s 2(22)(e) - advances given to societies - in the absence of legal right of the assessee in the said society the amount advanced cannot be treated as deemed income.

Highlight: When electrical installations are treated as plant and machinery the depreciation has to be allowed @ 25% as per provisions contained u/s 32

TMI Note: Capital Gain - transfer of right in the land or transfer of land itself - addition u/s 50C - Harassment to the honest tax payers

Highlight: Option to avail composition scheme under GST by electronically filing an intimation in FORM GST CMP-02 and FORM GST ITC-03 upto 30-9-2017 - See Rule 3(3A)

TMI Note: Does ICDS apply for the purposes of computing exemption u/s 11 to 13.

Highlight: Voluntary Reporting of Estimated Current Income and Advance Tax Liability - CBDT issues draft notification

TMI Note: Certain ICDS provisions are inconsistent with judicial precedents. Whether these judicial precedents would prevail over ICDS.

Highlight: Provisions of ICDS shall prevail w.e.f. AY 2017-18 to the transactional issues dealt therein over earlier judicial pronouncements.

Notification: Levy of anti dumping duty on New/unused pneumatic radial tyres with or without tubes and/or flap of rubber (including tubeless tyres) having normal rim dia code above 16 originating in, or exported from China PR

News: Voluntary Reporting of Estimated Current Income and Advance Tax Liability

TMI Note: In case of conflict between ICDS and other specific provisions of the Income-tax rules, 1962 governing taxation of income like rules 9A, 9B etc. of the Rules, which provisions shall prevail.

TMI Note: Does ICDS apply to computation of Minimum Alternate Tax (MAT) u/s 115JB of the Act or Alternate Minimum Tax (AMT) u/s 115JC of the Act.

TMI Note: Where a term has not been defined under ICDS, nor under the Act, but has different interpretations given to it by the courts in tax cases, and in ICAI Accounting Standards, which interpretation would prevail while interpreting ICDS.

TMI Note: Whether the provisions of ICDS apply to a non-resident who claims the benefit of a double taxation avoidance agreement (DTAA).

TMI Note: In case any of the ICDS provisions is contrary to a circular or press release issued by the CBDT, which would prevail over the other.

TMI Note: ICDS-I requires disclosure of significant accounting policies and other ICDS requires specific disclosures. Where is the taxpayer required to make such disclosures specified in ICDS.

Notification: Income Computation and Disclosure Standards (ICDS) - New ICDS to be effective from AY 2017-18

News: RBI Reference Rate for US $

Highlight: GST - Detention of goods under transport - discrepancy in documents - the statutory provisions provide a mechanism for adjudication following detention of goods including for the provisional release thereof pending adjudication - HC

Highlight: Reassessment - first few paragraphs of the assessment order dealt with objections and disposed of accordingly - Unfortunately, the manner in which the AO has decided the issue is wholly unsustainable in law - HC

Highlight: Business expenditure u/s 37 - liquidated damage - breach of contract terms - Expenditure was not incurred for any purpose which is an offence or which is prohibited by law - cannot be disallowed - HC

Highlight: Valuation - inclusion of reimbursement of expenses - managing participation of clients in certain mela, fairs, promotional activities etc. - They are liable to service tax on the gross amount received - They cannot restrict their tax liability to only agency commission

Highlight: TDS liability - ITAT confirmed the liability - We do not see how it is possible for us to uphold the order of the Tribunal and when it purports to decide two Appeals of the Revenue by single paragraph conclusion - HC

Highlight: Reopening of assessment - sufficiency of material available with the AO to form a belief that income chargeable to tax had escaped assessment - bogus purchases - seller refused to respond - notice would not be interfered with - HC

Highlight: Exemption u/s 11 - education activities - transport and hostel facilities surplus cannot be considered as business income of the assessee society

News: Draft Notification for insertion of new rule 39A in the Income-tax Rules, 1962 – comments and suggestions-reg.



|| 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