2011 (2) TMI 1545 - AT - Income Tax

Summary

Issues involved: The judgment involves appeals filed by the Revenue for multiple assessment years, addressing issues such as depreciation on investment portfolio, disallowance u/s.14A, bad debts written off u/s.36(1)(vii) and 36(1)(viia), broken period interest, and levy of interest u/s.234D.

ITA.427/Bang/2010 - Asst.Year : 2001-02 -By the Revenue:
The appeal challenges the allowance of depreciation on the valuation of investment portfolio by treating the investments as stock-in-trade. The decision is based on legal precedents and is upheld, leading to the dismissal of the appeal.

ITA.428/Bang/2010 - Asst.Year : 2003-04 -By the Revenue:
The appeal contests the disallowance u/s.14A, which was deleted by the Commissioner of Income-tax(A). The decision is against the Revenue based on previous rulings, resulting in the appeal being liable for dismissal.

ITA.429/Bang/2010 - Asst.Year : 2003-04 -By the Revenue:
Similar to the previous appeal, the issues of depreciation on investment and disallowance u/s.14A are dismissed, along with the ground relating to bad debts written off u/s.36(1)(vii) and 36(1)(viia), leading to the appeal's failure.

ITA.430/Bang/2010 - Asst.Year : 2006-07 -By the Revenue:
The appeal challenges depreciation on investment, disallowance u/s.14A, and bad debts written off, all of which are dismissed. The ground regarding broken period interest is also decided against the Revenue based on legal judgments, resulting in the appeal's dismissal.

ITA.711/Bang/2010 - Asst.Year : 2007-08 -By the Revenue:
The appeal raises similar issues as previous years, all of which are dismissed, leading to the overall failure of the appeal.

ITA.216/Bang/2010 - Asst.Year : 2004-05 -By the Assessee:
The appeal concerns the levy of interest u/s.234D and subsequent recovery of the refund. The Tribunal agrees with the assessee's argument, directing the Assessing Officer to rectify the mistake and provide relief, resulting in the appeal's success.

C.O.No.27/Bang/2010 - Asst.Year : 2005-06 -By the Assessee:
The cross objection challenges the omission to consider relief u/s.88E, leading to a remittance back to the Assessing Officer for reconsideration based on legal decisions, and is treated as allowed for statistical purposes.

C.O.No.57/Bang/2010 - Asst.Year : 2007-08 -By the Assessee:
The cross objection disputes the disallowance of expenditure incurred in entering into insurance business, arguing it should be treated as revenue expenditure. However, the Tribunal holds the expenditure as capital expenditure, leading to the rejection of the ground and the failure of the cross objection.

In conclusion, the judgment results in the dismissal of Revenue's appeals, the allowance of the assessee's appeal in ITA.216/Bang/2010, and the treatment of cross objections for statistical purposes, with one cross objection being dismissed.