2015 (9) TMI 1479 - HC - Income Tax

Receipt of interest on loans land deposits given to various parties - income from Income profits and gains of business and profession OR income from other sources - Held that - Issue is covered against the assessee in assessee s own case for the Assessment Year 1990-1991 reported in 2004 (9) TMI 37 - ALLAHABAD High Court Claim in respect of rent in Transit Guest House - Held that - Issue is covered against the assessee in the assessee s own case by judgment for the Assessment Year 1993-94 reported in 2013 (12) TMI 832 - ALLAHABAD HIGH COURT . Consequently the issue is decided against the assessee and in favour of the Department. Depreciation on tube well at a higher rate of 25%? - Tribunal holding that claim of depreciation on assets in respect of Radico Textile Unit which had not yet commenced during the year under consideration? - Held that - Issues which were allowed in favour of the assessee for the year 1993-94 in which order of the Tribunal was accepted by the Department as the same was not challenged in a higher forum. Since no distinguishing features have been pointed out and the principle of consistency is required to be maintained inter se between the parties we are of the opinion that the Department cannot be permitted to question these issues when it was accepted by them in the previous years. Our view is supported by decisions of the Supreme Court in Radhasoami Satsang Vs. Commissioner of Income Tax (1991 (11) TMI 2 - SUPREME Court ) Berger Paints India Ltd Vs. Commissioner of Income Tax (2004 (2) TMI 4 - SUPREME Court ) and Commissioner of Central Excise Vs. Bal Pharma Limited Bangalore and others (2010 (9) TMI 307 - SUPREME COURT OF INDIA ). In view of the aforesaid the issue is decided in favour of the assessee and against the Department. Treatment to various capital expenses as revenue expenses - Held that - The similar issue arose for consideration before this Court in the assessee s own case for the Assessment Year 1993-94 wherein the Court in its judgment held that the issue did not arise for consideration. On the facts and circumstances of the case we find that the said issue also does not arise for consideration. Consequently the issues is decided against the Department and in favour of the Assessee. Deduction for loss on goods in transit - Held that - Tribunal had directed the Assessing Officer to allow the said loss in the year 1993-94 under consideration provided the assessee s company gives up its claim for deduction in respect of the same for the Assessment Year 1993-94.We are of the opinion that no prejudice has been caused to the interest of the Revenue in allowing the claim of the assessee in the present Assessment Year subject to assessee s giving up its claim in the previous Assessment Year i.e. 1993-94. In the light of the aforesaid the issue is decided against the Department and in favour of the assessee.

Summary

Issues:
1. Depreciation on assets for a unit not yet operational
2. Classification of interest income from loans and deposits
3. Depreciation rate for tube well
4. Claim for rent in "Transit Guest House"
5. Treatment of capital expenses as revenue expenses
6. Deduction for loss on goods in transit

Issue 1 - Depreciation on assets for non-operational unit:
The Tribunal held in favor of the assessee based on consistency with previous years where the Department accepted the same issue. Citing precedents like Radhasoami Satsang and Berger Paints India Ltd, the Court decided in favor of the assessee and against the Department.

Issue 2 - Classification of interest income:
The Court ruled against the assessee based on a previous judgment in the assessee's own case for the Assessment Year 1990-1991. The issue was decided in favor of the Department.

Issue 3 - Depreciation rate for tube well:
The Court found in favor of the assessee as the issue was previously allowed in the assessee's favor for the year 1993-94. Since the Department accepted the decision in the previous year, the Court maintained consistency and decided in favor of the assessee.

Issue 4 - Claim for rent in "Transit Guest House":
The Court ruled against the assessee based on a previous judgment in the assessee's own case for the Assessment Year 1993-94. The issue was decided in favor of the Department.

Issue 5 - Treatment of capital expenses:
The Court found that the issue did not arise for consideration based on a previous judgment in the assessee's own case for the Assessment Year 1993-94. Consequently, the issue was decided against the Department and in favor of the assessee.

Issue 6 - Deduction for loss on goods in transit:
The Tribunal directed the Assessing Officer to allow the loss in the current year subject to the assessee giving up the claim for the previous year. The Court decided in favor of the assessee and against the Department, stating that no prejudice was caused to the Revenue by allowing the claim.

In conclusion, the appeal was partly allowed based on the Court's decisions on each issue, considering consistency with previous judgments and the specific circumstances of each matter.