2014 (6) TMI 375

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....; : Dilip B Bhosale, J . This Income Tax Appeal is directed against the order dated 10.08.2007 passed by the Income Tax Appellate Tribunal, Bangalore Bench-'A' (for short 'the Tribunal'), in ITA No.1225/2005, pertaining to the Assessment year 1998-99, whereby, Tribunal partly allowed the appeal filed by the respondent-assessee. The appeal before the Tribunal was directed against the order dated....

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....s allowable under Section 37 of the Act. Contrary to the law declared by the Apex Court in 225 ITR 798 and 225 ITR 802 by ignoring the allowing of these expenses under Section 35D of the Act as held by the Assessing Officer and confirmed by the Appellate Commissioner?      (3) Whether the Tribunal was correct in holding that interest earned on nonperforming assets should not....

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..../s.Canfin Homes Ltd.,), it was submitted that the 1st and 3rd substantial questions of law will have to be answered in favour of the assessee and against the Revenue. We accordingly answer the 1st and 3rd substantial questions of law in favour of the assessee and against the Revenue in terms of the judgment dated 01.08.2011 in ITA No.801/2006 (M/s.Canfin Homes Ltd.,) . Insofar as the second substa....

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.... observations, but it may also be observed that the Assessing Officer shall take into consideration the judgments of the Supreme Court in Book Bond India vs. Commercial Tax Officer (162 ITR 373) and Brook Bond India Ltd. vs. Commissioner of Income Tax [(1997) 225 ITR 798]. 7. In the circumstances, the matter is remanded to the Assessing Officer to consider the second substantial question of law....