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TMI Blog2015 (4) TMI 1251X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of domestic law are applicable ? Addition on account of deferred guarantee commission - ITAT not deciding the case on merits and setting aside the matter on the issue to the assessing officer - Held that:- The matter has been sent back to the authority, lower to the Tribunal for a decision on merits. Merely because a order passed in the case of Bank of Bahrain and Kuwait [2010 (8) TMI 578 - ITAT, MUMBAI] has been brought to the notice of the parties and the assessing officer, does not necessarily mean that the issue will not be decided by him in accordance with law. We do not see any basis for entertaining this question. Addition u/s 14A - Held that:- ITAT was justified in holding that no interest section 14A for earning of interest income on tax free bonds as the assessee has sufficient interest free funds available. Setting aside the matter to the assessing officer on the issue of applicability of provisions of section 115JA to foreign companies - No substantial question of law. - INCOME TAX APPEAL NO.1314 OF 2013 - - - Dated:- 15-4-2015 - S.C.DHARMADHIKARI AND A.K. MENON, JJ. For The Appellant : Mr.Tejveer Singh For The Respondent : Mr. K.Gopal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... circumstances of the case and in law, the ITAT was justified in holding that no interest section 14A for earning of interest income on tax free bonds as the assessee has sufficient interest free funds available in not been able to establish any clear cut nexus between the interest free funds available with it and the investment made in tax free bonds ? (6) Whether on the facts and circumstances of the case and in law, the ITAT was right in deciding the case on merits and setting aside the matter to the assessing officer on the issue of applicability of provisions of section 115JA to foreign companies even though the provisions of section 115JA clearly state that a company , which includes both Indian as well as foreign companies, has to pay tax as per the provisions of section 115JA if the tax payable by it as determined as per the provisions of section 115JA if the tax payable by it as determined as per provisions of the Act is less than minimum prescribed in section 115JA ? 4. In so far as question Nos.1 to 3 are concerned, we are informed by both sides that these are entertained by this Court and are subject matter of pending appeals. On that basis and proceeding to hold ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would reproduce two paragraphs from a common order passed by the Tribunal and impugned in this appeal. 21. Ground no.3 is against the deletion of disallowance of ₹ 43,65,360 on account of interest and other expenditure incurred for earning interest on tax free bonds and directing to allow exemption u/s 10(15)(iv) on gross basis. Here again both the sides are in agreement that the facts and circumstances of this ground are similar to ground no.4 for the assessment year 1998-99. Following the view taken hereinabove, we hold that the exemption u/s 10(15)(iv) is to be allowed on gross basis. Section 14A is applicable. However, in the light of the tabulated financial position showing investment in bonds at much lower level than the amount of capital and reserves, no disallowance of interest is called for u/s 14A. The A.O. is directed to compute disallowance u/s 14A in respect of other administrative and other expenses on some reasonable basis. This ground is partly allowed. 42. Ground no.3 is against the deletion of disallowance of ₹ 34,90,860 by granting exemption u/s 10(15) on gross basis. Here also both the sides are in agreement that the facts and circumstances ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ority continue to either err or fail to correct themselves. Therefore, we have found that there is absolutely no reason given for consolidation of these appeals and for decision by a common order. When we invited the attention of particularly Mr.Gopal, appearing on behalf of the assessee to page 68 and the opening paragraph in the Tribunal's order, he could not tell us as to how the batch of 9 appeals involving assessment years 1998-99 to 2003-04 could be said to be involving the same issues. If they are consolidated and if both the revenue and the assessee are raising the same questions, then, that is not clear nor can it be discerned by such a cryptic opening remark. In this regard, we cannot do anything better then invite the attention of all concerned to the judgment of the Hon'ble Supreme Court rendered in the case of M/s.Chitivalasa Jute Mills V/s. M/s. Jaypee Rewa Cement reported in A.I.R. 2004 Supreme Court, 1687. In the context of power of consolidation of suits, the Hon'ble Court held as under :- 9..... What is the cause of action alleged by one party as foundation for the relief prayed for and the decree sought for in one case is the ground of defence in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns made above are enough to guide the Tribunal and we hope that such mistakes and elementary in nature are not committed in future. We also expect the Tribunal not to sign judgments and decisions unless their checked thoroughly by them after their transcription. It may be a boring task but it has to be performed by none other than the decision makers. In such circumstances, we do not think that the appeal should be entertained and to correct some errors noted above. 10. Similar is the situation in regard to question No.6. For the reasons that have persuaded us not to entertain question No.4, we dismiss the appeal on question No.6. It is, therefore, admitted only on the above three questions of law. 11. To be heard along with Income Tax Act (L) No.1878 of 2012. 12. Mr.Jitendra Singh waives service for the respondent. 13. The Registrar (Judicial) / Registrar, High Court, Original Side, Bombay to ensure that the original record in relation to this Appeal is summoned from the Tribunal and offered for inspection of the parties. This paper book is treated sufficient for the purpose of admission of this appeal. However, the Registry must further ensure preparation of complete pap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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