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2013 (11) TMI 1717

I.T.A. No. : 590/Kol /2012, C.O. No. 49/Kol ./2012 (arising out of I .T.A. No.: 590/Kol ./ 2012) - Dated:- 29-11-2013 - Shri Mahavir Singh (Judicial Member) and Shri Abraham P. George (Accountant Member) Shri Rajendra Prasad, Sr. D.R. , for the Department Shri B.K. Chaturvedi , A.R. , for the assessee O R D E R Per Shri Abraham P. George : 1. These are appeal and Cross Objection filed by the Revenue and assessee respectively directed against an order dated 23rd December, 2011 of Commissioner of Income Tax (Appeals)-IV, Kolkata for assessment year 2007-08. 2. Revenue in it s Ground No.1 is aggrieved that ld. CIT(Appeals) had restricted a disallowance of ₹ 2,20,15,787/- made by the Assessing Officer under section 14A of the Income Tax A .....

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the argument of the assessee that no disallowance at all was called for under section 14A of the Act. We, therefore, dismiss the Ground No. 1 of the Revenue as well as Cross Objection filed by the assessee. 5. Vide its Ground No. 2, Revenue is aggrieved that ld. CIT(Appeals) deleted an addition of ₹ 2,20,15,787/- made to the book profit, while computing tax under section 115JB of the Act. 6. Ld. Counsel for the assessee submitted that the issue stood covered by the order of this Tribunal in assessee s own case for assessment year 2006-07 as well as 2008-09. 7. We have heard the rival contentions and perused the order relied on by the ld. Counsel for the assessee. This Tribunal in Revenue s appeal for assessment year 2008-09 in ITA No .....

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stem and he has to account for the accrued interest on the advance made by the assessee. The assesese has initiated legal proceedings against the borrower for the recovery of the amount before the appropriate authorities which is pending for adjudication. Therefore, the action of the department charging notional interest in the hands of the assessee on the amount of ₹ 3,99,40,000/- is not permissible under the law, more so, in the light of the undisputed fact of the legal proceedings for the recovery of the said amount. Hence, the addition is not sustainable for legal scrutiny and accordingly deleted". For the impugned assessment year also Revenue has no case that assessee had accounted as income any interest on sticky loans. Ass .....

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is required. Ground No. 4 of revenue s appeal is dismissed. 15. Vide its Ground No. 5, grievance of the revenue is that a disallowance of ₹ 32,07,083/- on account of depreciation claimed on plant & machinery purchased out of amounts received from NABARD was deleted by the ld. CIT(Appeals). 16. Ld. Counsel for the assessee pointed out that similar issue had come up before the Tribunal in assessee s own case for assessment year 2003- 04 in ITA No. 1572/Kol/2008. 17. We have heard the rival contentions and perused the orders of authorities below. The issue regarding disallowance on account of depreciation on plant and machinery purchased out of amounts withdrawn from NABARD had come up before this Tribunal in revenue s appeal for as .....

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