9911796707
TMI Blog2019 (11) TMI 629X X X X Extracts X X X X X X X X Extracts X X X X ..... unds. It transpires that this issue is covered in favour of the assessee by the decision of ITAT in assessee's own case for earlier years. In this regard we may gainfully 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 na ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 2% and more than 92% of assessee's total assets were deployed in the business of financing. The said facts could not be controverted by the revenue. Further, a perusal of 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 conscio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evidence to substantiate its claim during the course of the assessment proceedings." 6. Brief facts of the case as under :- During the course of assessment proceedings, it was observed by the Assessing Officer that the assessee has debited Miscellaneous expenses of Rs. 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 Rs. 57, 42, 28,508/- in the relevant financial year was a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 that also is accounted for as foreclosure expenses; and that as such it had not made any payment for any expenses and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Rs. 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 subsequent to which this amount has been arrived at. Learned CIT-A has in summary manner allowed the assessee's appeal. He has never refe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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