2012 (5) TMI 641

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.... 14A, of the Income Tax Act, 1961 (for short "the Act"). 3. Both the learned Representatives agree before us that the Hon'ble Jurisdictional High Court in Godrej & Boyce Mfg. Co. Ltd. v/s DCIT, (2010), 328 ITR 081 (Bom.), has partly reversed the Mumbai Special Bench decision of the Tribunal in Daga Capital Management Pvt. Ltd. [2008] 119 TTJ (Mum.) 289 (SB). Under these circumstances, we deem it appropriate to set aside the impugned order passed by the Commissioner (Appeals) and restore the issue to the file of Assessing Officer for denovo adjudication in line with the propositions laid down by the Hon'ble Jurisdictional High Court in Godrej & Boyce Mfg. Co. Ltd. (supra). This ground is, thus, allowed for statistical purposes. 4. Grou....

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....l Representative, on the other hand, submitted that the evidence was not before the authorities below. The issue in question is payment of provisional premium for renewal of group insurance and the same was in lieu of deposit linked insurance premium which was due to 1st June 2000. The assessee remitted the same on 18th May 2000 and, thus, no disallowance under section 43B, is called for. Hence, this ground is allowed. 10. On ground no.2, the learned Counsel submitted that the assessee has made a provision for doubtful debt and reduced the said provision from current assets disclosed in the balance sheet. On these facts, it is argued that clause (i) of Explanation (1) of section 115JB of the Act, cannot be applied in view of the judgment o....

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.... from sundry debtors appearing in Schedule-G of the balance sheet. The Hon'ble Supreme Court in Vijaya Bank v/s CIT, [2010] 323 ITR 166 (SC), held as follows:- "However, if an assessee debits provision for doubtful debts to the profit and loss account and makes a corresponding credit to the "current liabilities and provisions" on the liabilities side of the balance sheet, then it would constitute a provision for doubtful debt. In the later case, the assessee would not be entitled to deduction after April 1, 1989." 14. The Hon'ble Karnataka High Court in Yokogawa India Ltd. (supra) has relied on the judgment of Hon'ble Supreme Court in Vijaya Bank (supra), and at Page-310, the Hon'ble Supreme Court held as follows:- "........ Ho....

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....tfully following the aforesaid judgment of the Hon'ble Karnataka High Court in Yokogawa India Ltd. (supra), we allow this ground of the assessee. We now consider admission of additional grounds. 15. Learned Departmental Representative strongly opposed the admission of additional grounds, as the relevant facts are not available on record. It was submitted that the issues require investigation of facts. 16. Learned Counsel for the assessee submitted that the annual report is on record insofar as additional ground no.1 is concerned and that the Assessing Officer considered the issue of taxability of rental income based on written submission given by the assessee and, hence, the facts are on record. 17. On careful consideration of the conte....