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TMI Blog2019 (9) TMI 905X X X X Extracts X X X X X X X X Extracts X X X X ..... as well as the Revenue for the A.Ys. 2006-07 to 2008-09 came up for hearing before the Tribunal on 11.09.2019, for which separate orders have been passed, one for the A.Y. 2006-07 (ITA No. 509 and 714 of 2014) and one for the other two years (ITA No. 510 to 511 and 715 to 716 of 2014) . Some of the issues raised in the instant appeals are similar to those raised in the earlier years including the A.Ys. 2006-07 to 2008-09. Both the sides are in agreement that facts and circumstances of such similar grounds are mutatis mutandis similar to the earlier years, except where separately argued. 3. Ground No.1 of the assessee's appeal and Ground No.1 of the Revenue's appeal are against the sustenance/ deletion of addition on account of revenue r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irst appeal. 10. We have heard both the sides and gone through the relevant material on record. The disallowance has been made in two parts. The first component of disallowance is on account of interest u/s.14A r.w. Rule 8D(2)(ii). It has been brought to our notice that the Shareholders' fund of the assessee including Reserve and Surplus as on 31-03-2009 stands at Rs. 961.89 crore as against the total amount of Investments standing at Rs. 176.45 crore. 11. The issue of disallowance of interest under rule 8D(2)(ii) is now no more res integra in view of the judgment delivered by the Hon'ble Supreme Court in Godrej & Boyce Manufacturing Company Ltd. vs. DCIT (2017) 394 ITR 449 (SC), upholding the view of the lower authorities that when ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the year. 13. The ld. AR contended that the assessee did not earn exempt income from certain investments and hence they should be excluded. Since the relevant facts for determining such an issue are not available on record, we set-aside the impugned order and remit the matter to the file of AO with a direction to decide it accordingly. Needless to say, the assessee will be allowed a reasonable opportunity of hearing. 14. Ground No.8 of the assessee's appeal and Ground No.4 of the Revenue's appeal are against the confirmation/deletion of addition towards provision of warranty. 15. Both the sides agree that similar grounds have consistently been decided by the Tribunal in assessee's favour for the earlier assessment years. Following the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of these items, the assessee contended that loss of Rs. 2.18 crore was on account of MTM exercise and further loss of Rs. 8.88 crore was on account of ineffective hedge for its SABAH order and it was in the nature of provision against MTM loss with respect to forward contract of the said order which was cancelled. The AO took note of the Instruction No.03/2010 providing for not allowing deduction in respect of MTM loss. He further held that the loss of Rs. 8.88 crore was a contingent loss as on the closing date and hence not deductible. The ld. CIT(A) echoed the assessment order on the point. 20. Having heard both the sides and gone through the relevant material on record, it is seen that neither the AO nor the ld. first appellate author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e category of `Non-Adjusting Events', for which the accounts closing before that date are not to be adjusted. Incurring of loss in a succeeding year is something quite different from marking transaction to market rate as at the close of the year. Since the instant loss of Rs. 8.88 croer actually fell upon the assessee in the succeeding year, the same cannot be allowed as deduction in the year under consideration. 23. Ground No.3 of the Revenue's appeal is against the deletion of disallowances made on account of Public Relation expenses, Misc. Expenses, Vehicle expenses, Foreign Travel Expenses and Telephone expenses. 24. Both the sides agree that this ground is similar to the ground no.3 of the Revenue's appeal for the A.Y. 2008-09 in whi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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