2015 (9) TMI 1719 - HC - Income Tax

Addition on account of investment written off - HELD THAT - Notice is confined to issue A. Addition on account of notional interest income - HELD THAT - Issue covered in favour of the Assessee by the judgment of this Court in CIT v. Oriental Insurance Company Ltd. 2002 (9) TMI 44 - DELHI HIGH COURT . Consequently, no question is framed. Disallowance u/s 14A - disallowance on account of guest house expenses - HELD THAT - Issues stands covered by the order of the ITAT in the Assessee s own case for AYs 2000-01 and 2001-02 which has not been appealed against by the Revenue. Consequently, the Court declines to frame the said questions as well.

Summary

Issues:
1. Whether the Tribunal was correct in upholding the decision of the Ld. CIT (A) in deleting the addition of Rs. 3,39,60,000/- made by the AO on account of investment written off?
2. Whether the Tribunal was correct in upholding the decision of the Ld. CIT (A) in deleting the addition of Rs. 63,72,76,000 made by the AO on account of notional interest income?
3. Whether the Tribunal was correct in upholding the decision of the Ld. CIT(A) in deleting the disallowance of Rs. 29,62,415/- made by the AO u/s 14A of the Act?
4. Whether the Tribunal was correct in upholding the decision of the Ld. CIT(A) in deleting disallowance of Rs. 8,31,169/- made by the AO on account of guest house expenses?

Analysis:

1. The High Court considered the four issues raised in the appeal by the Revenue against the ITAT's order for the Assessment Year 2005-06. The first issue pertained to the addition of Rs. 3,39,60,000/- made by the AO on account of investment written off. The Tribunal upheld the decision of the Ld. CIT (A) in deleting this addition. The Court confined the notice to this issue, indicating its significance for further deliberation.

2. Issue B involved the addition of Rs. 63,72,76,000 by the AO on account of notional interest income. The Court noted that this issue was covered in favor of the Assessee by a previous judgment in CIT v. Oriental Insurance Company Ltd. Consequently, no specific question was framed regarding this issue.

3. Issues C and D related to the disallowance of Rs. 29,62,415/- under section 14A of the Act and the disallowance of Rs. 8,31,169/- for guest house expenses, respectively. The Court observed that these issues were already covered by the ITAT's order in the Assessee's own case for previous assessment years, which had not been appealed against by the Revenue. Therefore, the Court declined to frame specific questions on these issues.

4. The Respondent accepted the notice on issue A, indicating readiness to address this particular matter. The Court scheduled further proceedings for the case, listing it along with another matter on a specific date for hearing. The judgment highlighted the specific issues under consideration, the relevant legal precedents, and the procedural steps taken to address each issue effectively.