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2015 (12) TMI 1814 - AT - Income TaxDeduction u/s. 36(1)(viia) before setting of brought forward losses - Whether deduction is to allowed on total income and not on business income? - HELD THAT - While computing the statutory deduction under Clause (viiia)of Sub-section 1 of Section 36 of the Income Tax Act, 1961, the total income would be the business income of the assessee before deducting the deduction under this Clause and deductions under Chapter 6A of the Income Tax Act, 1961. Therefore the brought forward losses would not be deducted while computing the total income for the purpose of Sec. 36(1)(viia). Since, the deduction is available only for computing the business income under this Clause, therefore the total income also refers the income of the assessee from profit and gain from a business and shall not include the income other than the business income Interest u/s 244A - HELD THAT - As decided in own case amount refunded by the Revenue has to be adjusted towards interest payable to the assessee and the balance, if any, shall be adjusted towards tax. On this principle there is no contrary decision placed before us, we therefore agree with the plea of the assessee and direct the Assessing Officer accordingly Deduction for bad debts written off - HELD THAT - As decided in own case 2015 (11) TMI 1058 - ITAT MUMBAI Tribunal has allowed identical claim has followed the decision rendered by the Hon ble Supreme Court in the case of Catholic Syrian Bank 2012 (2) TMI 262 - SUPREME COURT and CIT Vs Karnataka Bank Ltd 2013 (2) TMI 40 - SC ORDER . We also notice that the new Explanation 2, which covers both rural and non-rural advances, has been inserted u/s. 36(1)(vii) of the Act by the Finance Act, 2013 w.e.f. 1.4.2014 only and hence it cannot have retrospective effect, since it affects substantive rights of the assessee. Loss on revaluation of trading derivatives - HELD THAT - Issue decided in own case 2013 (1) TMI 992 - ITAT MUMBAI as relying on UCO Bank 1999 (9) TMI 4 - SUPREME COURT Deduction u/s 80LA - assessee failed to file audit report with the return - HELD THAT - As decided in own case 2015 (11) TMI 1058 - ITAT MUMBAI followed the decision of the Hon ble Delhi High Court in the case of CIT Vs Web Comerce India Pvt. Ltd. 2008 (12) TMI 13 - HIGH DELHI COURT and held that since the assessee has filed the Audit report before finalization of assessment order, the Ld. CIT(A) was justified in directing the AO to allow the claim. Deduction u/ s 36(1)(viia) to the extent of provision made in books for bad and doubtful debts instead of the eligible amount as per the said section - HELD THAT - As assessee placed the decision of the Tribunal Ahmedabad Bench in the case of DCIT Vs Sarvodaya Sahakari Bank Ltd. 2014 (5) TMI 1182 - ITAT AHMEDABAD . It is the say of the Ld. Counsel that this issue need to be decided afresh in the light of the findings of the Tribunal Ahmedabad Bench. We find force in the contention of the Ld. Counsel. We accordingly set aside the issue to the file of the AO. The AO is directed to decide the issue afresh
Issues Involved:
1. Appeal by Revenue against CIT(A) order for AY 2007-08 2. Cross appeals by Revenue and assessee against CIT(A) order for AY 2009-10 Issue 1: Appeal by Revenue for AY 2007-08 - The Revenue appealed against CIT(A) order directing deduction u/s. 36(1)(viia) before setting off brought forward losses. - Revenue contested calculation of interest u/s. 24A based on ITAT decision, arguing it differs from the case facts. - Tribunal referred to Indian Overseas Bank case, holding that deduction under Sec. 36(1)(viia) is for computing business income. - Tribunal upheld CIT(A) findings based on previous Tribunal orders in the assessee's case for AY 1988-89 and 2001-02. - Revenue's appeal was dismissed based on the Tribunal's findings. Issue 2: Cross Appeals for AY 2009-10 - Assessee's appeal raised issues on disallowance u/s. 14A and claim u/s. 36(1)(viii). - Tribunal directed AO to reconsider disallowance issue based on previous Tribunal order for AY 2008-09. - Tribunal directed AO to reevaluate interest income for deduction u/s. 36(1)(viii) based on assessee's submissions. - Assessee's appeal was treated as allowed for statistical purposes. Revenue's Appeal for AY 2009-10 - Revenue raised grievances on bad debts written off, loss on trading derivatives, deduction u/s. 80LA, u/s. 36(1)(viii), and u/s. 36(1)(viia). - Tribunal dismissed Revenue's contentions based on previous Tribunal orders and Supreme Court decisions. - Tribunal directed AO to decide issues afresh following previous Tribunal and Supreme Court decisions. - Revenue's appeal was partly allowed for statistical purposes. In conclusion, the judgments addressed various issues related to deductions, disallowances, and calculations under different sections of the Income Tax Act for different assessment years. The decisions were based on previous Tribunal orders, Supreme Court rulings, and specific case facts, resulting in the dismissal of some appeals and partial allowance of others.
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