TaxTMI 
TaxTMI 
2011 (1) TMI 1211
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.... together and are being disposed of by way of this common order. ITA No. 5001/Mum/2004 (Assessment Year : 1998-99) The grounds of appeal for the Assessment Year 1998-99 are as follows: "In the facts and circumstances of the case and in law, the CIT( A) erred in (a) The learned CIT(A ) erred directing the Assessing Officer to allow loss on revaluation of unmatured oil exchange contract amounting to Rs. 50 lakhs. (b) The learned CIT(A ) erred in directing the Assessing Officer to allow the entire interest of Rs. 7,20,00,000 against Rs. 79,99,200 allowed by the Assessing Officer." 3. After hearing Shri Narendra Singh, learned DR and Shri Percy J. Pardiwalla, Sr. Advocate, we hold as follows. 4. In ground No. 1 which relates to the issue....
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....e present appeal stands covered by the orderof the Tribunal rendered in the case of State Bank of India v. Jt. CIT being ITA Nos. 1292 & 1293/Mum/01 dated 06.06.2002. In this case, the Tribunal has held that the gross amount of interest payable to the assessee would qualify for exemption under sub-sections (c ), ( f) and ( h) of section 10(15)( iv). The facts being identical, respective fully following the precedent, we decide this issue in favour of the assessee and against the Revenue." 6. Respectfully, following the decision, we uphold the order of first appellate authority and dismiss this ground of Revenue. 7. In the result, the appeal in ITA No.5001/Mum/2004 is dismissed. ITA No.5002/Mum/2004 (Assessment Year : 1999-2000) 8. The g....
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....bility of payments made to employees under the Voluntary Retirement Scheme as Revenue expenditure. The first appellate authority has discussed this issue at paras 7.4 and 7.5 on pages 6 & 7 of its order as under : "7.4 In support of the claim for deduction the learned AR relied upon various decisions, one of them being of the Supreme Court in the case of Indian Cable Co. Ltd. v. Workman AIR 1972 SC 2195. The assessee has also relied upon the decision of the Bombay High Court in the case of Bhor Industries Ltd. 264 ITR 180 , where it was held that such expenditure was allowable in the year in which it was incurred, notwithstanding that the amount was written off over a period of time. Reliance has also been placed on the decision of the Bom....
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.... effect from 01.04.2001 and hence applicable from Assessment Year 2001-2. Before the introduction of the new provision, the issue of allowability of expenditure on VRS will have to be decided as per the position of law prevailing at the relevant time. As pointed out by the learned AR, the apex court in the case of Indian Cable Co. Ltd. v. Their Workmen (AIR 1972 SC 2195) has held payment towards VRS as an expenditure allowable u/s.37(1) of the Act. It is worthwhile to quote the relevant portion of the said order: "....in the voluntary retirement scheme enabled the younger workmen to continue in service white it offered a temptation for the older employees to retire from service. The voluntary retirement scheme has not been challenged as ma....
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....deduction of Rs. 1,54,71,377 after setting off closing provision for bad and doubtful debts of Rs. 29,63,021. 10.3 It has been submitted that closing provision of Rs. 29,63,021 made u/s.36(1)( viia) ought not to have been set off against the amount of Rs. 1,84,34,398. In support of the above contention, the assessee has relied upon the decision of the Mumbai ITAT in Oman International Bank in ITA No.6063/M/96, ITA Nos. 7775 and 5694/B/95 for the Assessment Years 1993-94, 1990-91 and 1991-92 dated 27.11.2003 and 15.12.2003 where the issue has been discussed at length by the Tribunal and matter was decide in favour of the assessee. 10.4 I have gone through the orders of ITAT and I am in agreement therewith I accordingly, direct the Assessin....