9911796707
TMI Blog2014 (8) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... asset on basis of interest for five years being paid in advance in first year and, the assets written off over period of debentures for five years continuing benefit to business of the assessee over the entire period, the liability is to be spread over period of debentures and, the entire amount of interest received as upfront one-time payment of interest immediately on allotment is included in the income for the first year in which the amount of interest is received - Following the decision in Rakesh Shantilal Mardia, Ahmedabad Versus Deputy Commissioner of Income Tax [2012 (9) TMI 521 - SUPREME COURT] - Decided against Revenue. - Tax Appeal No. 380 of 2000 - - - Dated:- 2-7-2014 - M. R. Shah And K. J. Thaker,JJ. For the Petitione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1992-93 ₹ 3,62,294/- 1993-94 ₹ 1,35,874/- Rs.10,86,875/- 2.1. On the aforesaid basis, he offered the amount of ₹ 2,26,413/- and the balance of ₹ 8,60,462/- was not offered for taxation. The Assessing Officer did not accept the claim of the assessee that the sum of ₹ 8,60,462/- was not taxable during the year and he made addition of ₹ 8,60,462/- for the year under consideration, being the interest actually received from IDBI on IDBI Bonds under Sections 234B and 234C of the Income Tax Act (hereinafter referred to as the Act ). Being aggrieved and dissatisfied with the assessment order and against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eleting the addition of ₹ 8,60,462/-, which was made by the Assessing Officer, being the interest actually received from IDBI Bonds. It is submitted that considering the fact that the assessee received the entire amount of interest i.e. ₹ 10,86,875/- for the Assessment Year under consideration and without any condition and the assessee opted for computation of interest as per the option given under the Scheme/debentures, the entire amount of ₹ 10,86,875/- received by the assessee was required to be included in the income of the assessee in the Assessment Year under consideration. 3.1. In support of his above submissions, he has relied upon the decision of the Madras High Court in the case of Commissioner of Income Tax V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal has not committed any error and/or illegality in deleting the addition of ₹ 8,60,462/- for the Assessment Year under consideration. Making the above submissions and relying upon the above decisions, it is requested to answer the question accordingly in favour of the assessee and against the revenue. 5. Heard the learned advocates appearing on behalf of the respective parties at length. The short question, which is posed for consideration of this Court is, whether in the facts and circumstances of the case, the tax appellate tribunal is right in law and on facts in holding that the interest income in the hands of the assessee allotted in the three years IDBI capital bonds was required to be taxed only on proportionate basis a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assets written off over period of debentures for five years continuing benefit to business of the assessee over the entire period, the liability is to be spread over period of debentures and, therefore, the entire amount of interest received as upfront one time payment of interest immediately on allotment is included in the income for the first year in which the amount of interest is received. The aforesaid view of the Bombay High Court has been confirmed and approved by the Hon ble Supreme Court in the case of Rakesh Shantilal Mardia (Supra). 5.2. Now so far as reliance placed upon the decision of the Madras High Court in the case of Commissioner of Income Tax (Supra) as well as the decision of the Kerala High Court in the case of Varg ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
