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TMI Blog2020 (11) TMI 486X X X X Extracts X X X X X X X X Extracts X X X X ..... nd only the provision for bad debts (prudential write off) has been claimed as deduction in the computation of income as bad debt write off? - HELD THAT:- Second substantial question of law has also been answered against the revenue in M/S. VIJAYA BANK [ 2014 (10) TMI 1015 - KARNATAKA HIGH COURT] -The aforesaid fact also could not be disputed by learned counsel for the revenue. Second substantial question of law is also answered against the revenue and in favour of the assessee. Depreciation on Held to Maturity category investments - Whether the same is notional in nature and against the RBI guidelines for valuation of securities? - HELD THAT:- Substantial question of law is also been answered against the revenue in the case of KAR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the fourth substantial question of law is answered against the revenue and in favour of the assessee. Disallowance made under section 14A - HELD THAT:- The aforesaid question is also answered against the revenue by a Bench of this Court in M/S. SYNDICATE BANK [ 2020 (1) TMI 1141 - KARNATAKA HIGH COURT] . The aforesaid fact could not be disputed by learned counsel for the revenue. - Decided in favour of assessee. - I.T.A. NO.140 OF 2016 - - - Dated:- 6-11-2020 - HON BLE MR. JUSTICE ALOK ARADHE AND HON BLE MR. JUSTICE H.T.NARENDRA PRASAD APPELLANTS (BY SRI K.V. ARAVIND, ADV.) RESPONDENT (BY SRI T. SURYANARAYANA, ADV.) JUDGMENT ALOK ARADHE J., This appeal under Section 260-A of the Income Tax Act, 1961 (h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of the Act prior to amendment w.e.f. 01.04.2008? 5. Whether on the facts and in the circumstances on the case, the Tribunal were right in law in deleting the disallowance made under section 14A of the Act? 2. The factual background in which the aforesaid substantial questions of law arises for our consideration needs mention. The assessee is a Banking Company. For the Assessment Year 2007-08, the assessee filed Return of Income on 29.10.2007 and declared the Income as Nil . The Return was processed under Section 143(1) of the Act on 30.08.2008 and as per Section 115 JB of the Act, the tax was computed at ₹ 12,60,62,901/-. Subsequently, the case was selected for scrutiny and Notices under Section 143(2) of the Act were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the aforesaid factual background, the revenue is in appeal before this Court. 4. Learned counsel for the assessee submitted that the first substantial question of law has already been answered against the revenue by a Bench of this Court vide order dated 16.01.2020 passed in ITA No.18/2014 and connected matters. The aforesaid statement made by learned counsel for the assessee could not be disputed by learned counsel for the revenue. For the reasons assigned in the order dated 16.01.2020 passed in ITA No.18/2014 and connected matters, the first substantial question of law framed by this Court is answered against the revenue and in favour of the assessee. 5. Insofar as second substantial question of law is concerned, learned counsel f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed against the revenue and in favour of the assessee. 8. The only substantial question of law, which survives for our consideration is substantial question of law No.4, which pertains to eligibility of the assessee for grant of deduction under Section 36(1)(viii) of the Act. Learned counsel for the revenue submitted that prior to amendment with effect from 01.04.2008, benefit of Section 36(1)(viii) of the Act was not available to a Banking Company and therefore, the assessee is not entitled to claim deduction under Section 36(1)(viii) of the Act. It is further submitted that provisions of Section 36(1)(viii) of the Act were amended with effect from 01.04.2008 and are applicable to the Assessment Year 2008-09. Learned counsel for the reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... public company formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes, an amount not exceeding forty per cent of the profits derived from such business of providing long-term finance (computed under the head Profits and gains of business or profession before making any deduction under this clause) carried to such reserve account: Provided that where the aggregate of the amounts carried to such reserve account from time to time exceeds twice the amount of the paid-up share capital and of the general reserves of the corporation or, as the case may be, the company, no allowance under this clause shall be made ..... X X X X Extracts X X X X X X X X Extracts X X X X
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