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TMI Blog2022 (3) TMI 782X X X X Extracts X X X X X X X X Extracts X X X X ..... 575 and 1576/Mds/2006, relating to the respective assessment years 2001-02 and 2002-03, proposing the following substantial questions of law: "(i) Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the assessee was entitled to higher depreciation on vehicles given on lease at 40% instead of the normal rate of 25% even though no evidence was produced to show that the vehicles were being run on hire and also ignoring the fact that the leasing in the assessee's case was part of its business of financing the purchase of vehicles? (ii) Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in allowing relief on the issue of the enhancement made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther on the facts and in the circumstances of the case, the income Tax Appellate Tribunal was right in deleting the interest levied under Section 234D by holding that the provision was applicable only for the assessment year 2004-05 and onwards whereas the provision applied to all regular assessments made on or after 1.6.2003 irrespective of the Assessment year involved?" 2.At the time of admission, i.e., on 04.10.2010, a Co-ordinate Bench of this court has rejected the first question of law, in the light of the decision of this court in the case of CIT v. Madan & Co. [254 ITR 445]; and admitted these appeals on the respect of the questions. 3.Today, when the matters were taken up for consideration, the learned counsel for the appellant/R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng of fact is to the effect that securities are held as stock-in-trade and that the income from sale therefrom is offered to tax as revenue. In the light of the admitted facts as seen from the order of the authorities, the expenditure incurred by the assessee towards broken period is liable to be allowed as revenue expenditure. There is no infirmity in the order of the Tribunal in this regard. 7.The question stands answered in favour of the assessee, following the judgment of the Bombay High Court in American Express International Banking Corporation Vs. CIT (258 ITR 601). The appeals are dismissed. No costs." (iii)The 4th and 5th substantial questions of law qua depreciation in the value of securities, are covered in favour of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. Following the same, this court allowed the said tax case in favour of the Revenue. For better appreciation, the relevant passage of the judgment in CIT v. Infrastructure Development Finance Co. Ltd (supra) is extracted hereunder: "20. In the case on hand, though previously, the amount has been refunded to the assessee, the subsequent check made by the Revenue, made it clear that the assessee is not entitled to get refund, which has necessitated the Revenue to claim refund. In this case, the assessment was completed only on 30.03.2004, the date on which the order of assessment came to be passed. But, the amended provision of section 234D came into force with effect from 01.06.2003. When once the regular assessment is completed after t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etition, we hold that since the regular assessment has been completed only on 30.03.2004 and the amended provision of law i.e., section 234D came into operation on and from 01.06.2003, which is well prior to the completion of the regular assessment, certainly, the assessee is liable to pay interest on the excess refund amount received and enjoyed by him all these years as contemplated under section 234D of the Act. 22. Accordingly, this appeal preferred by the Revenue is allowed, answering both the questions of law in favour of the Revenue. No costs." 4.Having regard to the facts and circumstances of the case and taking note of the submissions made by the learned counsel on either side and also following the aforesaid decisions, we answe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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