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TMI Blog2019 (11) TMI 629X X X X Extracts X X X X X X X X Extracts X X X X ..... nly subject to adjustment as envisaged above. Disallowance of foreclosure expenses - AO held that the assessee failed to prove that applicable TDS has been deducted and paid for, therefore, even if the above expenditure are allowable u/s 37 (1), still the same needs to be disallowed u/s 40(a)(ia) - HELD THAT:- We note that it is settled law that res judicata does not apply to tax matter. Hence learned counsel s reference to earlier and subsequent proceedings are not at all relevant here. We note that the aforesaid sum of ₹ 57,42,28,508/- inter alia represents the balance in the loan accounts which have been closed pursuant to realisation of assets secured from the borrower after incurring the various expenditure. We note that no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refer to the latest order of the ITAT for A.Y. 2007-08 and others vide order dated 24.1.2018. In the said case this issue was adjudicated by the ITAT as under :- 5.1 We have carefully heard the rival contentions and perused relevant material on record. Ground No.1 is related with treatment of STCG on sale of shares/mutual fund whereas Ground No. 8 is alternative ground qua rebate u/s 88E for STT paid by the assessee. During hearing before us, Ld. AR fairly conceded that the amount of STCG earned by the assessee included certain intra-day gains/losses which were in the nature of speculation and hence were required to be excluded while arriving at figures of STCG. Therefore, at the outset, we direct Ld. AO to exclude the same from the fig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f various assessment orders for earlier years as placed on record give strength to assessee's contention that the assessee has been treated as investor in the past with respect to Short Term Capital Gains on Shares and the same has been assessed under the head Capital Gains only. Further, the assessee has added back the provision for diminution in value of investments in the computation of income for impugned AY as evident from Page-19 of the paper-book which reflects the intention of the assessee to hold the said investments as an investor. Although we are conscious of the fact that principle of res-judicata do not apply to Income Tax Proceedings yet in view of rule of consistency, in our opinion, the revenue is debarred from taking fl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings, it was observed by the Assessing Officer that the assessee has debited Miscellaneous expenses of ₹ 84.17 crores to its profit and loss account. The assessee was asked vide notice u/s 142(1) dated 05.03.2013 to submit complete details of the same giving nature wise party wise details including name, address, amount TDS deducted and copies of sample bills in respect of each type of expenses. The Assessing Officer noted that as per details submitted by the assessee, it has incurred 'Foreclosure Charges' of ₹ 57, 42, 28,508/- in the relevant financial year was as under:- S.No. Particular Amount 1. Foreclosure Charges - HP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee s appeals learned CIT(A) summarily decided the issue in favour of the assessee by holding as under :- The issue is considered. In the context, during the appeal proceedings, it has been submitted that on foreclosures of term loan/hire purchase agreement, the assessee had to account for reversal of overdue charges, waiver of interest and other charges levied on their customers as the income had already been credited [ in earlier years] to the P L account. It is explained that in the cases where the assets, for which term loan was given to its customers, were re-possessed on account of default, and it could not recover its balance amount of the principal and interest even on disposable of those assets, the assessee suffered losses and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d counsel submitted that after properly appreciating the issue and details learned CIT-A has passed a reasonable order. 13. We have carefully considered the submission. We note that it is settled law that res judicata does not apply to tax matter. Hence learned counsel s reference to earlier and subsequent proceedings are not at all relevant here. We note that the aforesaid sum of ₹ 57,42,28,508/- inter alia represents the balance in the loan accounts which have been closed pursuant to realisation of assets secured from the borrower after incurring the various expenditure. We note that no detail was submitted before the assessing officer. Assessing officer had no occasion to examine the details including the various entries subsequ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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