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2015 (7) TMI 1122 - ITAT MUMBAI

2015 (7) TMI 1122 - ITAT MUMBAI - TMI - Disallowance of club expenses - Held that:- It was brought to our notice by ld. AR that in the immediately preceding assessment year i.e. AY 2004-05, the Tribunal have allowed assessee’s claim for club expenditure and against which the department has not filed any appeal before the Hon’ble High Court. We also found that the issue is squarely covered by the decision of Hon’ble jurisdictional High Court in the case of Otis Elevators Co. (India) Ltd.[1991 (4) .....

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ld that:- The assessee has claimed to have investment for acquiring land for constructing its hospital. On such investment, neither during the year nor in the future years assessee has earned any dividend income. Keeping in view the judicial pronouncements referred by the ld. AR, we restore the matter back to the file of AO for deciding afresh as per law. - Disallowance of depreciation on management rights of Nagpur Hospital u/s.32(1)(ii) - Held that:- We have considered rival contentions an .....

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eld that:- The advance given to Kanishka Housing Development Co. Ltd. was given as a commercial expediency, the same is, therefore, directed to be allowed. With regard to the advance given to Dr. Jay Prasanna, Dr. Bais, Wockhardt Ltd., however, nothing was placed on record to support the contention that advance was given to these persons as a commercial expediency. Accordingly, we confirm the disallowance. - Disallowance of provision for leave encashment and provision for gratuity - Held tha .....

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and HDFC Bank Ltd.,[2011 (6) TMI 774 - ITAT MUMBAI]. Keeping in view the proposition of law laid down in above judicial pronouncements, we restore the matter back to the file of AO for deciding afresh in terms of above judicial pronouncement - Disallowance of provision for fringe benefit tax while calculating book profit u/s.115JB - Held that:- Provision for fringe benefit tax is an allowable deduction while computing book profit u/s.115JB as per the decision of the Hon’ble Delhi High Court .....

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Section 143(3) of the I.T.Act. 2. Common grounds have been taken in all the years under consideration both by assessee and revenue, therefore, all the appeals were heard together and are now being disposed of by this consolidated order. 3. Rival contentions have been heard and record perused. The assessee is a company engaged in the business of setting up and running a hospital and has been expertise in management of health centres and facilities. During the course of scrutiny assessment for th .....

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682. We have also found that Hon ble Supreme Court in the case of United Glass Mfg. Co. Ltd., C.A.No.6447/2012(SC) has decided the similar issue in favour of the assessee. The Full Bench of Hon ble Punjab and Haryana High Court in the case of Groz Beckert Asia Ltd., 351 ITR 196(P&H)(Full Bench) has decided the issue in favour of the assessee. Respectfully following the order of the jurisdictional High Court as well as other High Courts discussed above, we do not find any merit in the action .....

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isdom Textile Industries Ltd., 319 ITR 204(P&H) iii) CIT Vs. Shivam Motors (P) Ltd., ITA No.88/2014(All) iv) CIT vs. Mascot Footcare, ITA No.67/2014(P&H) v) CIT Vs. Lakhani Marketing Inc., ITA No.970/2008 (P&H) vi) CIT Vs. Corretch Energy P.Ltd., ITA No.239/2014(Guj) vii) Holcim (India) Pvt. Ltd. Vs. DCIT, 37 CCH 423(Del) viii) Avshesh Mercantile P. Ltd.,148 TTJ 607(Mum) ix) Shree Shamkamal Finance & Leasing Co. P. Ltd., 21 SOT 42 (Mum) and x) ACIT Vs. Lafarge India Holdings (P) .....

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90 ITD 1 ii) ATE Enterprises Ltd. Vs. JCIT, 102 ITD 110; and iii) ACIT Vs. Lafarge India Holdings (P) Ltd. 7. We have considered rival contentions and perused the record. The assessee has claimed to have investment for acquiring land for constructing its hospital. On such investment, neither during the year nor in the future years assessee has earned any dividend income. Keeping in view the judicial pronouncements referred by the ld. AR, we restore the matter back to the file of AO for deciding .....

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) ONGC Videsh Ltd. Vs. DCIT, 37 SOT 97; iv) Techno Shares & Stocks Ltd. Vs. CIT 327 ITR 327; and v) Areva T & D India Ltd. Vs. DCIT, 345 ITR 421. 10. We have considered rival contentions and found from the record that exactly similar issue was restored by the Tribunal to the file of AO in assessee s own case in the preceding year. Respectfully following the order of the Tribunal in assessee s own case, we restore this issue to the file of AO for deciding afresh after considering the deci .....

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commission is also hereby restored back to the file of AO for deciding afresh as per law. 13. The next issue is disallowance of interest of ₹ 96,16,870/- as interest free funds advanced to Kanishka Housing Development Co. Ltd., Dr. Jay Prasanna, Dr. Bais, Wockhardt Ltd. 14. The contention of ld. AR was that assessee has advanced interest free loans to its sister concern on account of commercial expediency for which reliance was placed on the decision of Hon ble Supreme Court in the case of .....

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nditure. 15. We have considered rival contentions and found that the advance given to Kanishka Housing Development Co. Ltd. was given as a commercial expediency, the same is, therefore, directed to be allowed. With regard to the advance given to Dr. Jay Prasanna, Dr. Bais, Wockhardt Ltd., however, nothing was placed on record to support the contention that advance was given to these persons as a commercial expediency. Accordingly, we confirm the disallowance. 16. The next ground with regard to d .....

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ed by the order of CIT(A) for deleting disallowance of only incremental provision of leave encashment instead of full amount of provision. 19. From the record we found that the AO has made disallowance of closing balance of leave encashment amounting to ₹ 22,80,086/-, whereas the provision made during the year was only amounting to ₹ 5,11,625/-. We therefore, do not find any infirmity in the order of CIT(A) for restricting the disallowance of the provision made during the year amount .....

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ere is no infirmity in the order of CIT(A) for considering the provision made for leave encashment and gratuity as ascertained liabilities not includible while computing profit u/s.115JB. There is no infirmity in the order of CIT(A). Our view is supported by the following decisions : i) CIT vs. Enchjay Forgings Ltd., 251 ITR 15; ii) CIT vs. National Hydro Electric Power Corporation Ltd., 45 DTR 117; and iii) Dresser Value India Private Ltd. Vs.ACIT, 30 SOT 495. 21. The assessee in its appeal for .....

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y merit for disallowance of employees contribution of ₹ 55,519/-. 22. The grounds taken by the assessee with regard to disallowance of club expenses and interest paid on disallowance of borrowings are same as discussed for the assessment year 2005-06, hereinabove, therefore, the AO is directed to follow the reasoning given by us for the assessment year 2005-06. 23. The next grievance of the assessee relates to disallowance of interest expenditure u/s.14A amounting to ₹ 18,00,412/-. T .....

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