2015 (10) TMI 2060

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of law for our consideration : 1. "Whether on the facts and in the circumstances of the case and in law the Tribunal is right in restoring back the issue of disallowance u/s 14A at Rs. 1,34,56,840/- to the Assessing Officer for fresh consideration? 2. Whether on the facts and in the circumstances of the case and in law the Tribunal is right in allowing written off amount as irrecoverable as the same has to be allowed as bad debt u/s 36 (1) (vii) r.w.s.36 (2) as all conditions laid down therein stands fulfilled. The Tribunal has erred in holding that investment in ICDS was part of the business activity as interest accrued therefrom has been treated as business income and loss arising on such investment was allowed as busine....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... tune of Rs. 32 lacs. The aforesaid claim for deduction was made under section 36 (1) (vii) of the Act as irrecoverable and/or under section 28 of the Act as write off and business loss. However, the Assessing Officer by an order dated 31st March 2005 disallowed the claim for deduction on account of the write off as ICDs of Rs. 2.51 crores. 5. Being aggrieved the appellant filed an appeal to the Commissioner of Income Tax (Appeals. By an order dated 5th July 2010 the Commissioner of Income Tax (Appeals) confirmed and upheld the order dated 31st March 2015 of the Assessing Officer t the extent it directed the claim for deduction on account of write off as ICDS. 6. On further appeal by the respondent-assessee the Tribunal by the impugne....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....terest amount cannot be allowed to determine the petitioner's income chargeable under the head Profits and gains from business or profession. 8. We find that it is an undisputed position that the respondentassessee has made ICDs during the A.Y.1995-96. The interest received on these ICDs was on accrual basis and shown in its Profit and Loss account and offered to tax as part of profits of business. This was accepted from Assessment year 1995-96 onwards up to the assessment year 2001-02. In view of the above acceptance of the interest received as 'business income' by the revenue in the earlier years it is not open to it to now take up a plea that the amount which are written-off as 'interest not received' cannot be all....