https://www.taxtmi.com/caselaws?id=461476 ITAT Chennai ruled on multiple issues for a hire purchase finance company. The tribunal directed the AO to consistently apply either EMI or ESM method for taxing interest income based on Madras HC precedent. NPA provision reversal issue was remitted for fresh consideration. Bad debt recoveries from amalgamated companies were held taxable as business receipts. Business origination costs were allowed following SC precedent in Taparia Tools. Amortization expenditure reversal credit was denied. TDS disallowance under section 40(a)(i) was remitted for factual verification. Securities trading classification was remitted for fresh examination. UPS depreciation at 60% was allowed. Government securities were held eligible for indexation benefit, distinguishing them from bonds/debentures. Section 14A disallowance was restricted to investments yielding exempt income, with interest disallowance only if own funds insufficient. en-us Wed, 09 Mar 2022 00:00:00 +0530 Tue, 08 Apr 2025 18:56:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=461476 ITAT Chennai ruled on multiple issues for a hire purchase finance company. The tribunal directed the AO to consistently apply either EMI or ESM method for taxing interest income based on Madras HC precedent. NPA provision reversal issue was remitted for fresh consideration. Bad debt recoveries from amalgamated companies were held taxable as business receipts. Business origination costs were allowed following SC precedent in Taparia Tools. Amortization expenditure reversal credit was denied. TDS disallowance under section 40(a)(i) was remitted for factual verification. Securities trading classification was remitted for fresh examination. UPS depreciation at 60% was allowed. Government securities were held eligible for indexation benefit, distinguishing them from bonds/debentures. Section 14A disallowance was restricted to investments yielding exempt income, with interest disallowance only if own funds insufficient. Case-Laws Income Tax Wed, 09 Mar 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=461476