TaxTMI 
TaxTMI 
2013 (7) TMI 194
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....llowance of premium of Rs. 31,94,29,775 paid by the assessee on redemption of premium notes. 3. The learned Sr. Counsel, Mr. J.D. Mistry, appearing on behalf of the assessee, submitted that the point in issue involved is squarely covered by the decision of the Tribunal, Mumbai Bench, decided in a bunch of appeals vide order dated 13th June 2012, in Avshesh Mercantile Pvt. Ltd. v/s DCIT, Ascent Tradecon Pvt. Ltd. v/s DCIT and 14 other parties, wherein similar issue has been decided in favour of the assessee. 4. The learned Departmental Representative fairly conceded that the issue before us stands covered by the aforesaid decision of the Tribunal. 5. After carefully considering the findings of the Assessing Officer and the Commissioner (A....
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....ture of expenditure incurred for the purpose of business and secondly, it is also disallowable under section 14A. During the second appellate proceedings, the Commissioner (Appeals) dismissed the assessee's contentions following his own order in Ascent Trading Co. Pvt. Ltd. for assessment year 2003-04, vide order dated 18th September 2006 and confirmed both the contentions of the Assessing Officer. This issue has been dealt extensively by the Tribunal after taking into consideration the rival contentions and also the relevant provisions of law and came to the following conclusion:- "22. We have heard the rival submissions and also perused the relevant material on record. It is observed that the proceeds of premium notes (OCPN) on which the....
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....ring the years under consideration. The learned counsel for the assessee on the other hand has pointed out that no exempt income from the said investment was also actually earned by the asseesee in the years under consideration. He has also relied on the decision of coordinate bench of this Tribunal in the case of Delite Enterprises Pvt. Ltd. (supra) as affirmed by the Hon'ble Bombay High Court stating that in the similar facts and circumstance, disallowance made under section 14A was held to be not sustainable. 23. We have carefully gone through the order of the Tribunal passed in the case of Delite Enterprises Pvt. Ltd. (supra) as well as the judgment of Hon'ble Bombay High Court affirming the decision of the Tribunal. In the case of Del....
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....since profits derived by the Assessee Company from a partnership firm were exempt from tax u/s 10(2A) of the Income tax Act, the interest expense related to such tax-free profits is to be disallowed u/s 14A of the Income Tax Act? " Hon'ble Bombay High Court vide its judgment delivered on 26th February, 2009 held that when there was no share of profit from the Firm which otherwise would be exempt (as referred to in the question) for the relevant year, the question as framed by the Revenue would not arise. Consequently the decision of the Tribunal on this issue was upheld by Hon'ble High Court of Bombay and the appeal of the Revenue was dismissed. 25. At the time of hearing, the contention raised by the learned DR in this regard is that the....
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....cise the appellate powers or that there is no decision on merit when the high court dismisses an appeal holding that no substantial question of law arises from the order of the Tribunal. It was held that whenever an order of the subordinate forum is carried in appeal before the higher appellate forum/court, operative part thereof merges into the judgment, decision or order of the higher court after the confirmation, modification or reversal, as the case may be, and the decision of the lower court or forum has no independent existence thereafter in relation to the issue which was carried before the appellate court or forum. It was held that where the High Court comes to the conclusion that no substantial question of law arises on a Particula....