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2015 (5) TMI 1068

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..... - SUPREME COURT ] Disallowable u/s. 14A - Held that:- As in the case of Godrej Boyce Manufacturing Co. (2010 (8) TMI 77 - BOMBAY HIGH COURT) wherein it was held that Rule 8D is prospective in operation and hence disallowance, if any, has to be made in accordance with section 14A of the Income Tax Act and the tax authorities ought to have verified the reasonableness of interest referable to exempt income. Thus we hereby set aside the order of learned CIT(A) and restore the matter back to the file of the Assessing Officer with a direction to the Assessing Officer to re-examine the matter in the light of the provisions of section 14A of the Act. - I.T.A. No. 6991/Mum/2011 ,I.T.A. No. 6992/Mum/2011 ,I.T.A. No. 6993/Mum/2011 ,I.T.A. No. 6994 .....

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..... ome tax (Appeals) erred in confirming the disallowance of depreciation on motor cars given on finance lease by treating the lease transaction as finance transaction. 2. On the facts and in the circumstances of the case and in law, the learned Commissioner of Income-tax (Appeals) erred in confirming the disallowance of depreciation in respect of assets given on lease by the appellant in earlier years. 3. The assessee admittedly is a finance company. The assessee claimed depreciation in respect of leased assets in the original assessment proceedings. On an appeal filed by the assessee, ITAT set aside the assessment with a direction to the Assessing Officer for deciding the issue afresh. The Bench also directed the Assessing Officer to v .....

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..... e Assessing Officer to allow claim of depreciation on the assets given under sale and lease back basis and the Assessing Officer was also directed to withdraw any corresponding benefit given to the assessee by excluding the value of capital component of the lease rent from the income of the assessee. In arriving at such conclusion the ITAT, in the following orders, followed the decision of Hon'ble Apex Court in the case of I.C.D.S. Ltd. (350 ITR 527) M.A. Nos. 420 to 422/Mum/2013 dated 30.4.2014 M.A. Nos. 423 424/Mum/2013 dated 11.7.2014 8. Learned Departmental Representative fairly submitted that the issue stands covered against the Revenue and in favour of the assessee by virtue of the decisions of ITAT (supra). 9. We have con .....

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..... income in its books whereas it is contended that it was notional income. Learned CIT(A) observed that the approach of the assessee is self contradictory. The company entered into lease securitization of lease receivables with Development Credit Bank for the purpose of availing finance. There is a gain to the assessee representing the difference between the amount financed and the amount shown as outstanding in the loans and advance account. The assessee deferred the said gains over a period of two years and credited ₹ 1.68 crores for A.Y. 2002-03 (Rs. 4.75 crores for A.Y. 2003-04) to the profit and loss account of the years under consideration. Since it is not the case of the assessee that the said sum represents capital receipt, lear .....

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