Appellant's appeals partially allowed on interest, book profit, and interest charges under sections 234A, 234B, 234C

The appellant's appeals against the disallowance of interest expense, computation of Book Profit u/s. 115JB of the Act, and charging of interest u/s. 234A, 234B, and 234C of the Act were partially allowed for statistical purposes. The Tribunal directed the Ld. CIT(A) to reconsider the disallowance of interest expense issue in light of a Co-ordinate Bench's findings and pending issues before the Honorable Special Court. The computation of Book Profit issue was considered consequential to the decision on interest expense, while the matter of charging interest was remanded to the AO for recalculating interest liability in accordance with the law.

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Issues:
- Disallowance of interest expense
- Computation of Book Profit u/s. 115JB of the Act
- Charging of interest u/s. 234A, 234B, and 234C of the Act

Disallowance of Interest Expense:
The appellant's appeals were against three separate orders of the Ld. CIT(A)-40, Mumbai for different assessment years. The Ld. Counsel for the assessee did not press ground No. 1, 2, and 3. Ground No. 4 related to the disallowance of interest expense. The Ld. CIT(A) had relied on a decision that was set aside by the Tribunal. The Tribunal found that the Ld. CIT(A) followed the findings in the case of Eminent Holdings Pvt. Ltd. The Tribunal restored the issue to the files of the Ld. CIT(A) for fresh adjudication, following the findings of a Co-ordinate Bench. The Ld. Counsel pointed out that the issue of interest expenditure was pending before the Honorable Special Court. The Tribunal directed the Ld. CIT(A) to consider this fact while deciding the issue afresh. Ground No. 4 was treated as allowed for statistical purposes.

Computation of Book Profit u/s. 115JB of the Act:
Ground No. 5 related to the computation of Book Profit u/s. 115JB of the Act. The Tribunal considered this ground consequential to the decision on ground No. 4 and disposed of it accordingly.

Charging of Interest u/s. 234A, 234B, and 234C of the Act:
Ground No. 6 related to the charging of interest u/s. 234A, 234B, and 234C of the Act. The Ld. Counsel for the assessee referred to a similar issue considered by the Tribunal in another case. The Tribunal had restored the matter to the file of the AO to recompute the interest liability as per the law. Ground No. 6 was treated as allowed for statistical purposes.

In conclusion, all three appeals filed by the assessee were allowed in part for statistical purposes. The order was pronounced in the open court on 5th March 2015.

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