9911796707
TMI Blog2012 (12) TMI 325X X X X Extracts X X X X X X X X Extracts X X X X ..... ough the advances were made to group concerns from the borrowed funds, yet same were advanced for commercial expediency, that advance were in pursuance of an agreement, that the assessee was granted permission to publish a magazine without payment or royalty and reduced payment of assets usage charges but had not mentioned as how the payment of Rs.2.33 Crores commensurate with asset usage charges, that agreement of royalty reduction and usage charges was not available to the AO - the matter should be remanded back to the A.O for fresh consideration - in favour of Revenue for statistical purposes. Refund of sales tax paid in excess of demand - addition to income - Held that:- FAA in appellate proceedings held that sales tax refund did not contain any interest paid by the sales tax department & directed the AO to verify the addition and delete the addition if there was no part of interest payment on the refund. From the orders available it is found that neither the AO nor the FAA has examined the issue of refund with reference to the provisions of section 43(B), so the matter is being remitted back to AO for further verification and to take a final decision - in favour of Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case and in law, the Learned Commissioner (Appeals) erred in confirming the addition of interest due to Global Trust Bank of Rs. 11,55,698. 2. On the facts and circumstances of the case and in law, the Learned Commissioner (Appeals) erred in confirming the addition of interest on debentures of Rs. 15,00,000. 3. On the facts and circumstances of the case and in law, the Learned Commissioner (Appeals) erred in confirming the addition of payments to Business India Provident Trust of Rs.75,l2,292. 4. On the facts and circumstances of the case and in law, the Learned Commissioner (Appeals) erred in confirming the addition of payment to Securex Capital Market towards professional fees of Rs. 16,99,226. 5. On the facts and circumstances of the case and in law, the Learned Commissioner (Appeals) erred in confirming the addition of payments of Rs.1,68,000 to Right Click towards purchase of two computers for the winners of subscription scheme. 6. On the facts and circumstances of the case and in law, the Learned Commissioner (Appeals) erred in confirming the addition of payments to Marg Publications of Rs.16,500. 7. On the facts and circumstances of the case and in law, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e claimed as per the Revised Return of income. AO held that the said expenses pertained to prior period and, hence, were not allowable during the assessment year under consideration. 6. The assessee preferred an appeal before the First Appellate Authority (FAA). It was submitted that amounts in question were bad debts, but in the accounts same were disclosed as prior period expenses. It was further submitted that said amounts were not recoverable and were written off.FAA held that expenses claimed by the assessee under the head prior period expenses should be allowed as bad debts u/s.36(1)(vii) r.w.s. 36(2) of the Act. He referred to the decision of Star Chemical delivered by the Hon ble High Court of Mumbai. 7. After passing the order he noticed that he had not given any finding with regard to following items claimed and allowed as bad debts :- a) Interest due to Global Trust bank Rs.11,55,698/- b) Interest on debentures Rs.15,00,000/- c) Payment to business India PF Trust Rs.75,12,292/- d) Payment to Securex Capital market towards professional fees Rs.16,99,226/- e) Right Click (payment for purchase of two computers for the winn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowed by him vide paragraph D of his order (page 6 7 of the order). Assessee preferred an appeal before the FAA. In remand report submitted to the FAA, AO again stated that the assessee had not used the borrowed funds for his own business, hence, interest paid by it was not allowable. 13. FAA after considering the assessment order and the submission of the assessee held that though the advances were made to group concerns from the borrowed funds, yet same were advanced for commercial expediency, that advance were in pursuance of an agreement, that the assessee was granted permission to publish a magazine without payment or royalty and reduced payment of assets usage charges. He allowed the expenditure incurred on account of interest on borrowing. 14. Before us, the DR submitted that FAA had not mentioned as how the payment of Rs.2.33 Crores commensurate with asset usage charges, that agreement of royalty reduction and usage charges was not available to the AO.AR supported the order of the FAA. He also relied upon the orders of the Tribunal for the AYs 1998-99, 2000-01, 2001- 02 and 2002-03. We have perused the said orders but find that facts of those appeals are not ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
