Tribunal remands interest and book profit issues for fresh adjudication under section 115JB.

The Tribunal set-aside issues regarding relief of liability towards interest expenditure and calculation of book profit under section 115JB of the Act to the files of the CIT(A) for fresh adjudication. The chargeability of interest under sections 234A, 234B, and 234C of the Act was also remanded to the CIT(A) for levy in accordance with the law. The appeal by the assessee was allowed for statistical purposes.

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Issues Involved:
1. Granting relief of liability towards interest expenditure.
2. Calculation of book profit under section 115JB of the Act.
3. Chargeability of interest under sections 234A, 234B, and 234C of the Act.

Analysis:

Issue 1: Granting relief of liability towards interest expenditure
The appeal was filed against the order of the CIT(A) regarding the assessment year 2009-10. Ground no.4 raised the grievance that the CIT(A) erred in not granting relief of liability amounting to Rs. 50,24,522 towards interest expenditure claimed by the assessee. The Tribunal noted that representatives from both sides agreed to restore the issue back to the files of the CIT(A) based on earlier decisions. The Tribunal observed that a similar issue had been set-aside and restored for fresh adjudication in other cases. Citing precedents, the Tribunal decided to set-aside ground no.4 to the files of the CIT(A) for fresh adjudication after granting a reasonable opportunity of being heard to the assessee. Ground no.4 was allowed for statistical purposes.

Issue 2: Calculation of book profit under section 115JB of the Act
Since ground no.4 was set-aside for fresh adjudication, ground no.5, relating to the calculation of book profit under section 115JB of the Act, was considered consequential to the decision on ground no.4. Therefore, the Tribunal set-aside this grievance to the files of the CIT(A) for fresh consideration in accordance with the law after findings on the claim of interest as per ground no.4 of the appeal. Ground no.5 was allowed for statistical purposes.

Issue 3: Chargeability of interest under sections 234A, 234B, and 234C of the Act
Ground no.6 pertained to the chargeability of interest under sections 234A, 234B, and 234C of the Act. The Tribunal noted that the levy of interest is mandatory, and even though it is consequential in this case, the issue was set-aside to the files of the CIT(A) to levy interest as per the provisions of the law. The appeal filed by the assessee was allowed for statistical purposes, and the order was pronounced in the open court on 18/08/2014.

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