2017 (9) TMI 1528 - HC - Income Tax

Appeal Dismissed: Precedent Upheld on Tax Issues

The High Court dismissed the appeal, as all issues raised had been previously decided in favor of the Assessee in prior cases. The Court declined to frame ... Disallowance of amortization of premium paid on securities - Held that:- This issue stands covered in the favour of the Assessee by the decision in the Assessee’s own case for the AY 1996-97 [2012 (9) TMI 446 - DELHI HIGH COURT] Disallowance of depreciation on securities including loss on shifting of securities from AFS to HTM category, also stands covered against the Revenue as relied upon above case Contribution made by the Assessee to the Punjab & Sind Bank Employees Pensions Fund Trust - Held that:- Although contributions to the pension funds may not be allowable under Section 36 (1) (iv) of the Act, the same is allowable under Section 37 of the Act. See The Commissioner of Income Tax – 6, Mumbai v. M/s. Glaxo Smithkline Pharmaceuticals [2013 (3) TMI 759 - BOMBAY HIGH COURT] Addition in the Assessee's book profit computed u/s 115JB - Held that:- The order of the High Court for AY 1996-97 had remanded the issue to the AO for fresh consideration. It is pointed out that, on remand, the AO passed the order accepting the plea of the Assessee. Consequently, on this issue also, this Court also declines to frame a question. Issues:1. Disallowance of amortization of premium paid on securities2. Disallowance of depreciation on securities including loss on shifting of securities3. Contribution made to the pension fund and its allowability under Section 37 of the Act4. Deletion of additions in the Assessee's book profit computed under Section 115JB of the ActIssue 1 - Disallowance of amortization of premium paid on securities:The High Court noted that this issue was previously decided in favor of the Assessee in a prior case. The Court referenced a decision from September 2012, which covered the same disallowance of &8377; 35,20,25,056/- on account of amortization of premium paid on securities. As the issue was already settled in favor of the Assessee, the Court declined to frame any question on this issue.Issue 2 - Disallowance of depreciation on securities including loss on shifting of securities:Similar to the first issue, the High Court found that this issue was also previously decided against the Revenue in a prior case from September 2012. The Court noted that the deletion of the addition made by the Assessing Officer on account of disallowance of depreciation on securities, including loss on shifting of securities, was covered by the earlier decision. Therefore, the Court declined to frame any question on this issue.Issue 3 - Contribution to the pension fund and its allowability under Section 37 of the Act:The third issue focused on the deletion of the addition of &8377; 38,02,52,097/- made by the Assessing Officer on account of the contribution to the pension fund. The High Court observed that the ITAT had decided in favor of the Assessee, relying on a decision of the Bombay High Court. The Bombay High Court consistently held that contributions to pension funds, although not allowable under Section 36(1)(iv) of the Act, are allowable under Section 37. The Revenue failed to present any contrary view to the Court, and the Court noted that the Revenue's appeal against the Bombay High Court decision did not result in a stay. Consequently, the Court declined to frame a question on this issue.Issue 4 - Deletion of additions in the Assessee's book profit under Section 115JB of the Act:Regarding the deletion of additions in the Assessee's book profit computed under Section 115JB of the Act, the High Court mentioned that a previous order from September 2012 had remanded the issue to the AO for fresh consideration. Subsequently, the AO accepted the Assessee's plea. As a result, the Court declined to frame a question on this issue as well. Ultimately, the appeal was dismissed by the Court.