AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2014 (7) TMI 464
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....6/- (A.Y. 2006-07)-." 3.1. In A.Y. 2003-04 the CIT(A) allowed the claim of the assessee by following observations: "The ground no. 1 of appeal is against the disallowance of Bonds Servicing expenses amounting to Rs. 1,20,11,000/- as the AO treated them as an item of capital expenditure. The Assessing officer has disallowed this amount by observing that the bonds servicing expenses were capital in nature and relied on the decision of the Supreme Court in the case of Brooke Bond India Ltd. 225 ITR 798. The appellant on the other hand has stated that bonds services expenses were incurred on account of payments made to Rate Agencies like ICRA, CRISIL etc. thus, the same should be allowed. The details of Bond Servicing Expenses along with their nature and purposes were given as under: Expense Amount Listing fees Rs. 1,24,813 Bond holder trusteeship fees 12,13,125 Bond Servicing Surveillance 48,66,500 Registrar Fees Rs. 17,18,986 Postage & Telegram charges Rs. 5,27,122 Advertisement Rs. 33,91,747 Printing and copying charges Rs. 1,68,396 It was submitted that bond servicing expenses being incurred by the companies relate to servicing the bonds and loans and th....
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....el for the assessee contends that the issue in question has been restored back to the file of assessing officer by the ITAT Delhi 'C" in ITA no. 5860/Del/2012 vide order dated 11-10-2013 for A.Y. 2004-05 by following observations: "6. We have heard the rival contentions of both the parties and have gone through the material placed on record. We find that first ground of appeal is covered in favour of assessee by Tribunal's order in ITA Nos. 699,359, 3357 and 2109 for assessment year 1997-1998 to 2000 -2001 vide order of Tribunal dated 08.08.2008. The relevant findings of Hon'ble Tribunal in these appeals are as under: "The chart for 30 years of opening balance in the present year i.e. A. Y. 1997-98 is submitted by the Ld. AR of the assessee. As per the same, opening balance of leased assets is Rs. 126,256.37 lacs, rate of depreciation as per companies Act is 4.75%, and rate of interest is 14.97%. The total for 30 years of depreciation is Rs. 126,256.42 lacs and Finance income is Rs. 157,820.46 lacs. Total of capital recovery is Rs. 126,256.37 lakhs and total of Lease Equalization is NIL. Since, in the present case also, as per this chart, even after deduction of finance income 14....
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....ecord. We find that the issue is covered by the decision of the ITAT for assessment year 1997-98 to 2000-01 wherein it has been held as under:- "We have heard the submissions of both the parties and perused the material on record and have gone through the orders of the authorities below and the judgments cited by the ld. AR of the assessee. We find that in the case of M/s Khirani Chemicals Ltd. (supra) the issue before Hon'ble Delhi High Court was regarding expenses incurred on issue of debentures. In that case also, the assessee claimed deduction of the entire expenses in the year of issue of debentures whereas the assessing officer came to the conclusion that the expenditure would qualify only for amortization under section 35D of the I.T. Act. Under these facts, it was held by Hon'ble Delhi High Court that the Tribunal was perfectly justified in holding that the expenditure was a permissible deduction and accordingly deleted the addition made by the assessing officer. Since the facts in the present case are similar, we decide this issue in the present case also in favour of the assessee by following the judgment of Hon'ble Delhi High Court. Ground no. 2 of the assessee's appeal....
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....rder dated 28-08-2009 wherein the Hon'ble ITAT has observed as under: "We have considered the rival submissions. There is no dispute about the allowability of expenses. Only dispute is regarding the year of allowability. If the Assessing officer is of the view that the expenses are pertaining to the prior period, the same are required to be considered for the prior and allowed in that year. If it is found that the expenses are allowable in this year on the basis of crystallization of liability, the same may be considered in the year under appeal. The assessee is therefore, directed to place necessary evidence in support of claim of expenses. The Assessing officer on appreciation of evidence may determine the year of allowability and allow the same in either of the year." Following the decision of the Hon'ble ITAT, the Assessing officer is directed to determine of allowability and allow in the year to which it pertains." 17. Ld. D.R. is heard. 18. We have heard rival contentions and perusal the material available on record. Respectfully following ITAT's order for A.Y. 2002-03 herein also we restore the issue back to the file of assessing officer with same directions. 19. Next c....
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....tion on office building is allowable." 5.4.2 I have carefully considered the facts of the case in the light of the submission made by the appellant. I find that the decision of the Hon'ble Supreme Court in the case of Mysore Minerals Ltd. supra) is squarely applicable in the case of the appellant. In their decision, the Hon'ble Supreme Court in that case has held as under: "The term owned as occurring in Section 32(1) of the Income Tax Act must be assigned a wider meaning. Anyone in possession of property in his own title exercising such dominion over the property as would enable others being excluded therefrom and having the right to use and occupy the property and/or to enjoy its usufruct in his own right would be the owner of the building though a formal deed of title may not have been executed and registered as contemplated by the Transfer of Property Act, the Registration Act, etc. "Building owned by the assessee", the expression as occurring in Section 32(1) of the Income Tax Act, means the person who having acquired possession over the building in his own right uses the same for the purposes of the business or profession though a legal title has not been conveyed t....
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....ing and 20 scooter parking slots will be handed over shortly. Drawings for the same are being obtained from the NBCC Possession with regard to 30 car parking and 20 scooter parking slots will be handed over shortly. Drawings for the same are being obtained from the NBCC HQ Officer. Fire-fighting layout drawing will also be supplied shortly as desired by IRFC." In respect of property referred in Para No.2 of the above referred possession letter the assessee is held to be the owner and was also held to be entitled for depreciation even for A. Y. 2001-02. Therefore/ there cannot be any dispute about the space allotted to the assessee directly by NBCC which is also confirmed by allotment letter dated 28.04.1998 referred in the possession letter and in respect of which possession was handed over on 29.03.2000. The formalities which are pending are in respect of transfer deed pending for execution but neither the notes on account not the auditor's report reveal that the possession was never taken. On the contrary provision was made and possession taken over. We/ therefore/ hold that the assessee is entitled to depreciation cannot be disallowed in view of the decision of Hon'ble ....