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TMI Blog2016 (4) TMI 750X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Representative are also not relevant to the facts in the case of the assessee Disallowance of pre-payment of premium made to IDBI pertaining to succeeding years - Held that:- It is evident that the assessee had paid premium of Rs. ₹ 3,80,56,306/- in order to reduce its interest liability from the relevant assessment years till the balance period of term loan. Therefore, it is necessary to link this expenditure with the benefit obtained by the assessee company for the balance period of term loan considering the matching principle of accountancy and the mercantile system of accounting in arriving at the correct income for the relevant assessment years. Moreover it is pertinent to mention that the balance period of the term loan an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rpose of determining the income under the normal provisions of the Act also the payment of dividend tax cannot be considered because section 115-O of the Act specifically provides that dividend tax is payable in addition to the income tax chargeable in respect of the total income of a domestic company. For the aforesaid reasons, we do not find it necessary to interfere with the orders of the Revenue.- Decided against assessee - I.T.A.No.614/Mds/2014 - - - Dated:- 24-2-2016 - SHRI N.R.S.GANESAN, JUDICIAL MEMBER AND SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER For The Appellant : Dr.Anitha Sumanth, Advocate For The Respondent : Mr. A.V.Sreekanth, JCIT ORDER Per A. Mohan Alankamony, AM:- This appeal is filed by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the assessment year 2005-06 on 28.05.2009 returning Nil income. Subsequently, the case was taken up for scrutiny and assessment was completed under section 143(3) of the Act on 31.12.2007 wherein the learned Assessing Officer made several additions. Ground No.1 - Interest received u/s.244A of the Act for ₹ 6,31,047/-:- 4. During the course of assessment proceedings, it was observed by the learned Assessing Officer that the assessee has credited an amount of ₹ 6,31,047/- being interest received on account of refunds due from the Revenue in accordance with the provisions of section 244A of the Act. However, the assessee has not included this amount in its computation of income. It was submitted by the assessee that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng its income. The fact remains that by virtue of order of the Tribunal, the income has crystallized to the assessee in accordance with mercantile system of accounting. Merely an appeal filed by the Revenue before the Hon ble High Court will not result in staying of such income/receipt unless an order is passed by the High Court to that effect. The other cases cited by the learned Authorized Representative are also not relevant to the facts in the case of the assessee. Moreover, this issue is decided against the Revenue by the decision of the Tribunal in the assessee s own case in ITA No.1619 dated 18th March, 2009 of A Bench of Chennai. Therefore, we hereby confirm the order of the learned Commissioner of Income Tax (Appeals) on this issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the learned Assessing Officer. 8. The learned Authorized Representative submitted before us that the entire premium paid during the relevant assessment year towards pre-payment of premium should be allowed as deduction because the expenditure has crystallized in the relevant assessment year. Hence, it was argued that the disallowance made by the Revenue may be deleted. 9. The learned Departmental Representative on the other hand argued in support of the orders of the Revenue. 10. We have heard both the parties and carefully perused the materials available on record. From the facts of the case, it is evident that the assessee had paid premium of Rs. ₹ 3,80,56,306/- in order to reduce its interest liability from the relevant asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Disallowance of dividend tax paid u/s.115-O of the Act:- 11. The assessee company had paid ₹ 39,45,000/- being tax on dividend declared and distributed. The assessee company had debited this amount in its profit and loss account. However, the learned Assessing Officer did not consider this amount for arriving at the book profit of the company for the purpose of computing tax under section 115JB of the Act. The learned Commissioner of Income Tax (Appeals) also confirmed the order of the learned Assessing Officer by stating that there is no provision in the Act to reduce the payment made under section 115-O of the Act for the purpose of computation of book profit under section 115JB of the Act. 12. The learned Authorized Repres ..... X X X X Extracts X X X X X X X X Extracts X X X X
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