GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
What's New Case Laws Highlights Articles News Forum Short Notes Statutory TMI SMS More ...
Extracts
Home List
← Previous Next →

2016 (3) TMI 633 - ITAT CHENNAI

2016 (3) TMI 633 - ITAT CHENNAI - TMI - Disallowance of the premium paid - Held that:- Since the assessee has ignored the premium paid on purchase of bonds and claimed premium portion also as interest, the Assessing Officer has not accepted and therefore, the difference of income payable of ₹ 20,35,000/- was added to the income of the assessee under the head "income from other sources". After considering the submissions of the assessee and also considering the facts of the case, the ld. CI .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

income in the hands of the assessee. Further, while redeeming the bonds, the ICICI Ltd. has also done TDS on the maturity value minus face value. Since the assessee has ignored the premium paid on purchase of bonds and claimed the same also as interest, the ld. CIT(A) has rightly observed that it is not an allowable expenditure. Accordingly, the ld. CIT(A) correctly sustained the addition made by the Assessing Officer. Under the above facts and circumstances, we find no infirmity in the order pa .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

peal is with regard to confirmation of disallowance of the premium paid of ₹ 20,35,000/-. The assessee has also raised an alternative plea that the premium paid be treated as purchase cost of the bond and deducted from the maturity value of the bond and should treated as allowable expenditure. 2. Brief facts of the case are that the assessee is engaged in the promotion of Information Technology Park and filed its return admitting NIL income. The return filed by the assessee was processed 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

quently, notice under section 143(2) of the Act was also issued on the assessee. Further, during the course of hearing, the assessee was asked to produce certain details and with regard to the purchase and sale of ICICI Bonds and the assessee has also submitted all the documents and the same were verified by the Assessing Officer. After verification of documents filed by the assessee and considering the submissions of the assessee, the Assessing Officer completed the assessment under section 143 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

essing Officer has observed that the assessee has purchased bonds issued by ICICI Ltd. from ICICI Security & Finance Co. Ltd. who were the holder of the bonds at that time. On the date of maturity, ICICI ltd. paid the maturity value to the owner of the bonds. The assessee was the owner of the bonds at the time of maturity and hence received the maturity value and was deducted TDS on the gross value of interest. From the copies of bonds, the Assessing Officer has noted that the assessee is no .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t for the Bonds (ii) Premium on the bonds. Bonds (value in Rs.) Accrued interest till purchase (Rs.) Premium Purchase (Rs.) 5,00,00,000 24,82,876.71 9,55,000 15,00,00,000 1,14,75,000.00 10,80,000 6. The assessee has already paid the interest components of ₹ 0.24 crores and ₹ 1.14 crores along with face value and premium to the previous bond holders ICICI Security & Finance Co. on cum interest price basis. The Assessing Officer further observed that on the date of maturity, the as .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

correctly shown. The ICICI Ltd. while redeeming the bonds has deducted tax at source on the maturity value minus face value without recognizing the purchase price of the assessee as tabulated below: Bond I Bond II Total maturity value 5,76,27,397 17,07,49,315 Less: Face value 5,00,00,000 15,00,00,000 Premium paid 9,55,000 10,80,000 Interest paid 24,52,876.71 1,14,75,000 Actual interest received with TDS 76,27,397 2,07,49,315 Interest income to the assessee 51,44,521 92,74,315 Interest income sh .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Latest Notifications:

    Dated      Category

20-7-2017 Cus (NT)

20-7-2017 GST CESS Rate

19-7-2017 IT

19-7-2017 IT

18-7-2017 IT

18-7-2017 CE (NT)

18-7-2017 CE

18-7-2017 GST CESS Rate

15-7-2017 Kerala SGST

14-7-2017 Andhra Pradesh SGST

14-7-2017 Cus (NT)

14-7-2017 Cus

13-7-2017 Co. Law

13-7-2017 Co. Law

13-7-2017 ADD

13-7-2017 ADD

12-7-2017 Jammu & Kashmir SGST

12-7-2017 Gujarat SGST

12-7-2017 Gujarat SGST

12-7-2017 CGST Rate

More Notifications


Latest Circulars:

19-7-2017 Goods and Services Tax

19-7-2017 Income Tax

18-7-2017 Customs

17-7-2017 Customs

14-7-2017 Income Tax

13-7-2017 Central Excise

13-7-2017 Customs

13-7-2017 Central Excise

13-7-2017 Customs

7-7-2017 Income Tax

More Circulars



|| 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