TaxTMI 
TaxTMI 
2013 (10) TMI 1075
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.... the circumstances of the case and law, the ld. CIT(A) has erred in deleting addition of Rs. 4,61 crores made for non-making of provision of interest for the year on losses incurred by the Corporation to the tune of Rs. 44.75 crores on the basis of director's report. 2 On the facts and in the circumstances of the case and law, the ld. CIT(A) has erred in deleting addition of Rs. 12.13 crores made for non-making of provision of interest on outstanding amount of Rs. 117.81 crores receivable from M/s Food Corporation of India." 3. Grounds No. 1 & 2 - After hearing both the parties we find that during assessment proceedings the AO noticed that there was an outstanding amount of Rs. 39.30 crores which was due to be received from the State ....
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....71,20,58,413/- was outstanding from the Punjab Government whereas Rs. 6,25,87,18,142/- was recoverable from FCI. The Assessing Officer disallowed notional interest amounting to Rs. 11,98,43,089/- and Rs. 43,53,42,284/- on account of said interest free out standings / recoverable from Punjab Government and FCI respectively. On appeal, The ld. CIT(A) opined that the amounts recoverable were trade debits and therefore, the action of the Assessing Officer was set aside and the additions made were deleted. 9 In second appeal, the Tribunal upheld the order of the ld. CIT(A) on both the issues observing a s under: We have considered the rival submissions carefully. The assessee before us is a Co-operative Society, which is an agency of the S....
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....tune of Rs. 54.88 crores on the basis of director's report. 2 On the facts and in the circumstances of the case and law, the ld. CIT(A) has erred in deleting addition of Rs. 26.56 crores made for non-making of provision of interest on outstanding amount of Rs. 257.87 crores receivable from M/s Food Corporation of India. 3 On the facts and in the circumstances of the case and law, the ld. CIT(A) has erred in deleting addition of Rs. 25 lakhs on ac count of unrealizable rent under Rule 4 read with explanation to Section 23(1) of the Act." 10 Grounds No. 1 & 2 - The issues in these grounds are identical to the issues raised in grounds No. 1 & 2 for Assessment year 2008-09 in ITA No. 708/Chd/2013 which we have adjudicated in para No. 8....
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....4-05 in ITA No. 561/Chd/2007. 15 After considering the rival submissions we find that identical issue came up for consideration of the Tribunal in Assessment year 2004-05 which has been decided by the Tribunal vide para 5 & 6 which read as under: " 5. We have considered the rival submissions carefully. Sect ion 22 of the Act provides for taxation of Annual Value of the property owned by the assessee. The determination of Annual Value is in terms of Section 23 of the Act. In terms of sub-section (1) clause (a), the Annual Value is deemed to be the sum for which the property can be reasonably expected to be let from year to year. In clause (b) the Annual Value is to the rent received or receivable in excess of the sum referred to in cla....