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2016 (4) TMI 648 - ITAT MUMBAI

2016 (4) TMI 648 - ITAT MUMBAI - TMI - Disallowance of claim of bad debts - Held that:- Bad debts claimed by the assessee should be set off against the opening balance available in the “Provision for bad and doubtful debts” account created u/s. 36(1)(viia) of the Act and the balance shall be allowable as deduction u/s 36(1)(vii) of the Act supported by the Instruction No. 17 of 2008 dated 26.11.2008 issued by CBDT and case of CIT Vs. UTI Bank Ltd. [2013 (1) TMI 209 - GUJARAT HIGH COURT]

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onal Bombay High Court in the case of HDFC Bank Ltd. (2014 (8) TMI 119 - BOMBAY HIGH COURT ).

Disallowance of depreciation on leased assets - Held that:- By following the decision rendered in the case of ICDS vs. CIT [2013 (1) TMI 344 - SUPREME COURT] as well as Coordinate Benches of the Tribunal in assessee’s own case, we set aside the order of learned CIT(A) on this issue and direct the Assessing Officer to allow the claim of depreciation on leased assets - I.T.A. No. 3415, 3416, 34 .....

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mpany. We shall first take up the appeal filed by the assessee for A.Y. 1999-2000. At the time of hearing learned AR did not press ground No. (D) and hence the same is dismissed as not pressed. 3. First issue urged by the assessee relates to disallowance of claim of bad debts. The Tax authorities held that bad debts written off by the assessee should be set off against the closing balance of Provisions for bad and doubtful debts created u/s. 36(1)(viia) of the Act available as at the year end an .....

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issued by CBDT. The Learned AR also submitted that this issue has been decided in favour of the assessee by Hon'ble Gujarat High Court in the case of CIT Vs. UTI Bank Ltd. (212 Taxamn 296). 4. We have heard the counsels of both the parties and perused the record. Since the claim of the assessee is supported by the Circular issued by the CBDT (supra) as well as decision rendered by Hon'ble Gujarat High Court in the case of UTI Bank Ltd. (supra), we set aside the order of learned CIT(A) on .....

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Ltd. (366 ITR 505) and submitted that interest free funds available with the assessee is more than the investment made by it and hence disallowance of interest is not called for. Learned AR also placed reliance on the decision dated 1.1.2016 rendered by the Coordinate Bench of the Mumbai ITAT in the case of Yes Bank Ltd. Vs. Add.CIT (ITA No. 3357/Mum/2013) and submitted that the Tribunal has followed the decision rendered by Hon'ble Bombay High Court in the case of HDFC Bank Ltd. (supra) to .....

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assessee with regard to availability of interest free funds requires examination at the end of the Assessing Officer. Accordingly we set aside the order of learned CIT(A) on this issue and direct the Assessing Officer to examine this issue afresh by considering the funds position of the assessee and take appropriate decision by following the ratio laid down by Hon'ble Jurisdictional Bombay High Court in the case of HDFC Bank Ltd. (supra). 8. The next issue urged by the assessee relates to th .....

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(350 ITR 527). 9. In view of the above, by following the decision rendered by Hon'ble Supreme Court as well as Coordinate Benches of the Tribunal in assessee s own case, we set aside the order of learned CIT(A) on this issue and direct the Assessing Officer to allow the claim of depreciation on leased assets. The ld D.R submitted that the Learned CIT(A), while confirming the disallowance of depreciation claimed on leased assets, had directed the Assessing Officer to exclude capital componen .....

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00. The first issue urged by the revenue relates to the disallowance made u/s. 14A of the Act. It may be noticed that the assessee had also agitated this issue in its appeal and while considering the same, we have restored this matter to the file of the Assessing Officer. Hence we direct the AO to take into account the grievance of the revenue while examining the issue of disallowance u/s 14A of the Act. 11. The next issue urged by the revenue relates to deletion of the disallowance relating to .....

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h his order passed on this issue. 12. The next issue relates to the disallowance of bad debts claimed by the assessee in respect of assets leased to a customer named M/s. Rajendra Steels Ltd. The assessee had claimed depreciation on the assets leased to the abaove said customer and the same was rejected by the AO. Since depreciation claim was disallowed, the assessee put forth an alternative claim to allow balance due from M/s. Rajendra Steels Ltd. as bad debts. However the Assessing Officer did .....

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ill found necessary. 13. We shall now take up the appeal filed by the assessee for assessment year 2000-01. In this year also, the assessee did not press the ground no.D relating to charging of interest u/s 234B. Accordingly, the same is dismissed as not pressed. The other three issues urged by the assessee relate to (a) Disallowance of interest expenditure relating to tax free income. (b) Disallowance of bad debts by considering the provisions of sec. 36(1)(viia) of the Act. (c) Diallowance of .....

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ts, we direct the AO to allow the claim of the assessee, since it is in accordance with the decision rendered by the co-ordinate benches in the assessee s own case for earlier years and also by the Hon ble Supreme Court in the case of ICDS Ltd (supra). The direction of the Ld CIT(A) with regard to the exclusion of capital component of leased income stands set aside. 14. We shall now take up the appeal filed by the revenue for AY 2000-01 wherein following issues are agitated:- (a) Disallowance u/ .....

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rd to the third issue, we have set aside this matter to the file of the AO in AY 1999-2000. Accordingly, we set aside this issue to the file of the AO with similar directions. 15. We shall now take up the appeal filed by the assessee for assessment year 2001-02 and 2002-03. In these years also, the assessee did not press the ground no.B relating to charging of interest u/s 234B. Accordingly, the same is dismissed as not pressed. The only other issue urged by the assessee relates to the disallowa .....

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