TMI Blog2015 (1) TMI 1286X X X X Extracts X X X X X X X X Extracts X X X X ..... ose of business and not for the purposes of acquiring assets giving exempted income. Accordingly, we are of the view that the CIT(A) has rightly made disallowance of interest and bank charges to the tune of ₹ 12,20,049/- and we confirm the same Disallowance made on account of provisions for bonus u/s. 43B - Held that:- As per the provisions of section 43B of the Act, the provision for bonus is to be allowed as a deduction in the year of actual payment and not otherwise. Once the provision is not allowed as deduction, the right back of the provision for bonus cannot be treated as income. In term of the above, we confirm the order of CIT(A) and this issue of revenue’s appeal is dismissed. Disallowance for provision of leave encash ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1961 (hereinafter referred to as the Act ) for Assessment Year 2008-09 vide his order dated 30.12.2010. 2. The first issue in this appeal of revenue is against the order of CIT(A) deleting the disallowance of bank charges and interest amounting to ₹ 12,20,049/- as against the disallowance made by AO at ₹ 18,37,293/- by invoking the provisions of section 14A of the Act read with Rule 8D(2)(ii) (iii) of the I. T. rules, 1962 (hereinafter referred to as the Rules). For this, revenue has raised following two grounds: 1. That the facts and circumstances of the case CIT(A) erred in excluding interest of ₹ 36,72,000/- being paid to bank while quantifying amount of expenditure by way of interest. 2. that on the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t ₹ 6,84,21,046/- as against ₹ 6,98,91,467/- adopted by assessing officer since he wrongly considered the value of land for ₹ 14,70,421/-. The assessing officer also wrongly considered the bank charges of ₹ 12,20,049/- as part of interest. Assessee in the business of mining and sale of coal with turnover of ₹ 45.73 crores. It is contended by A/R that the secured loan was utilized for the purpose of acquisition of assets related to mining business so interest paid to bank should be excluded while computing the disallowance under Rule 8D, keeping the above facts and circumstances the interest paid to others of ₹ 15,84,657/- on loans raised under the head unsecured loans raised (Schedule -18) is relatable to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... harges of ₹ 12,20,049/- the assessee contested that the entire secured loan has been utilized for acquisition of capital assets relating to business of mining and sale of coal where the assessee s turnover is more than ₹ 45.73 cr. We find from the accounts of assessee that it has been demonstrated by Ld. Counsel for the assessee that the major secured loans were utilized for the purpose of acquisition of assets relating to mining business and interest paid to the bank is for the purpose of business and not for the purposes of acquiring assets giving exempted income. Accordingly, we are of the view that the CIT(A) has rightly made disallowance of interest and bank charges to the tune of ₹ 12,20,049/- and we confirm the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the basis of the judgment of Hon'ble jurisdictional High Court in the case of Exide Industries Ltd. Vs. Union of India (2007) 292 ITR 470, but he fairly conceded that subsequently Hon'ble Supreme Court has stayed this judgment of Hon'ble jurisdictional High Court vide order 08-05-2009 by following observations:- Pending hearing and final disposal of the Civil Appeals, Department is restrained from recovering penalty and interest which has accrued till date. It is made clear that as far as the outstanding interest demand as of date is concerned, it would be open to the Department to recover that amount in case Civil Appeal of the Department is allowed. We further make it clear that the assessee would, during the pendency ..... X X X X Extracts X X X X X X X X Extracts X X X X
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