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of <h1>Assessee's Appeals Partly Allowed in Complex Tax Case</h1> The appeals filed by the assessee were partly allowed in a case involving various issues such as disallowance of provisions for Non-Performing Assets ... - Issues involved:The judgment involves issues related to disallowance of provisions for Non-Performing Assets (NPA), bill discounting charges, re-working of income consequent to lease transactions, disallowance of share issue expenses, disallowance under section 115JA of the Income Tax Act, and charging of interest under section 234B.Issue 1: Disallowance of provisions for Non-Performing Assets (NPA)The assessee, a Non-banking Finance Company, contended that non-accounting of finance charges on NPAs is in line with RBI norms and the real income concept. However, the issue was found to be covered against the assessee by the decision of the Hon'ble Madras High Court in the assessee's own case. Therefore, this issue was dismissed.Issue 2: Disallowance of bill discounting chargesThe disallowance of bill discounting charges was also decided against the assessee based on previous decisions. Consequently, this issue was also decided against the assessee.Issue 3: Re-working of income consequent to lease transactionsThe issue of re-working income due to lease transactions treated as finance transactions was not pressed during the hearing as it had already been allowed by the Assessing Officer based on regular computation. Therefore, this issue could not be allowed, and the ground taken in this regard was dismissed.Issue 4: Disallowance of share issue expensesThe share issue expenses were considered capital in nature by the Assessing Officer and were confirmed by the CIT(A). Given that similar expenses were allowed in previous assessment years, the disallowance was upheld.Issue 5: Disallowance under section 115JA of the Income Tax ActThere were two aspects to this issue. The provision for NPA was disallowed while computing book profit under section 115JA, as per the amendment introduced by the Finance Act, 2009. However, the disallowance of lease equalization charges was allowed in favor of the assessee based on the decision of the Hon'ble Madras High Court.Issue 6: Charging of interest under section 234BThe Assessing Officer was directed to provide consequential relief, if admissible, to the assessee regarding the charging of interest under section 234B, which was deemed mandatory but consequential.In conclusion, all the appeals filed by the assessee were partly allowed, with specific issues being decided in favor or against the assessee based on legal interpretations and precedents.
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