Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (5) TMI 237 - ITAT MUMBAIBad debts or business loss - advances to sister concern - Except the sum of Rs.23.70 lakh which the assessee wrote off in the instant year, the remaining amount was collected. - held that:- Obviously this amount cannot be considered as bad debt deductible u/s 36(1)(vii) in view of the fact that the condition laid down u/s 36(2) being the recognition of income from such debt in the same or an earlier year, is not satisfied. - As this debt did not arise out of any sale made by the assessee, cannot also be claimed as bad debt. The assessee advanced the said sum to its sister-concern only and that too in the nature of loan and not as a trading advance. If a part of the same is not recovered, that does not become business loss. - Decided against the assessee. Reassessment u/s 147 - fresh claim of depreciation u/s 32 - held that:- The claim for deductions, if any, can be entertained in the reassessment proceedings only in respect of those items of income which are the subject matter of addition in the assessment u/s 147. Adverting to the facts of the instant case it is observed that the claim for depreciation u/s 32 is independent of and unconnected with the items of income added by the A.O. in assessment u/s 143(3) r.w.s. 147. As such this deduction cannot be allowed. - Decided against the assessee. However relief granted to assessee, that if the depreciation allowance is not to be actually allowed then the written down of the assets, which was reduced by claiming depreciation should be accordingly increased, subject to verification by AO. Deduction u/s 80IA - Exemption u/s 10(23G) in respect of any income by way of dividend, interest or long term capital gains of an infrastructure capital fund or an infrastructure capital company or investment made by way of shares or long term finance in any enterprise carrying on the business of developing, maintaining and operating any infrastructure facility, which fulfils the conditions specified in sub-section (4A) of section 80-IA. - shares purchased prior to the introduction of this provision are ineligible for the benefit. - held that:- there is no logic in denying the exemption u/s 10(23G) in respect of the shares which were purchased on 31.01.1996. We have noticed above that the exemption under this provision is available on income resulting from the transfer of shares and not from the purchase of shares. If the eligible shares as sold in the relevant period, exemption cannot be denied simply on the ground that such shares were purchased in 1996. - Decided in favor of assessee. Inter corporate deposits - dis allowance of interest - held that:- if there are interest free funds available with the assessee sufficient to meet its investment and at the same time loan has been raised it can be presumed that the investments were from interest free funds and resultantly no disallowance of interest can be made.
|