TaxTMI 
TaxTMI 
2016 (6) TMI 495
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.....s 254 & 250(6) / 143(3) r.w.s 250(6) of the Act. 2. The assessee has raised several grounds in its appeals, however, the cruxes of the issues are as follows:- ITA No.10/Mds/2016 (Assessment Year : 2002-03): i) The learned Commissioner of Income Tax (Appeals) has erred in confirming the order of the learned Assessing Officer who had disallowed the professional and consultancy fees paid for Rs. 6,83,000/- to PWC towards "equity expansion" by holding it to be capital in nature. ii) The learned Commissioner of Income Tax (Appeals) has erred in confirming the order of the learned Assessing Officer who had disallowed 0.5% of the average investments towards expenditure attributable for earning exempt divided income by invoking section 14A r.....
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....penditure attributable for earning exempt divided income by invoking section 14A r.w.r 8D. 3. Brief facts are that the assessee is engaged in the business of long term housing finance, filed its returns of income for the relevant assessment years. Subsequently, assessments were completed by the learned Assessing Officer under section 143(3) of the Act wherein certain additions were made and the same was confirmed by the learned Commissioner of Income Tax (Appeals), aggrieved by which the assessee is in appeal before us. ITA No.10/Mds/2016 : (Assessment Year: 2002-03): Ground No.1: Disallowance of professional and consultancy fees paid for Rs. 6,83,000/- to PWC towards "equity expansion" 4. During the course of assessment proceedings,....
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.... investors, assistance in value analysis, assistance in structuring the consideration and the transaction, assistance in negotiations and coordinating the completion of the transaction. 4.2 The learned Departmental Representative on the other hand, argued in support of the Revenue and further stated that the nature of consultancy service rendered by the consultants were for the expansion of the equity capital base of the assessee company. 4.3 We have heard the rival submissions and carefully perused the materials available on record. The nature of service rendered by M/s. PWC to the assessee company such as preparation of information memorandum, identification of potential investors, assistance in value analysis, assistance in structuring....
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....nd it necessary to interfere with the orders of the Revenue. Accordingly, this ground is also held against the assessee. ITA No.11/Mds/2016 (Assessment Year : 2004-05): Interest earned on ICD, FD & IT Refund as 'income from other sources': 6. The assessee had derived interest income as follows:- i) Interest on ICD Rs.6,34,019 ii) Interest on FD with banks Rs.58,568 iii) Discounting charges Rs.31,71,471 iv) IT Refund Rs.25,355 Total Rs.38,89,413 6.1 The assessee had also claimed deduction under section 36(1)(viii) of the Act on the income earned by its business of providing long term housing finance. The learned Assessing Officer was of the opinion that the above interest income of Rs. 38,89,413/- has to b....
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....d Authorized Representative could not controvert these facts. Since the Tribunal has already decided the issue in the assessee's own case inconformity with the order of the learned Assessing Officer, who had meticulously analyzed the issue and by relying in the various decisions of the Hon'ble Apex Court held the matter against the assessee, we do not find it necessary to interfere with the orders of the learned Commissioner of Income Tax (Appeals) on this issue. Thus, this matter is also decided against the assessee. ITA No.12/Mds/2016 (Assessment Year : 2006-07): Ground No.1 : Disallowance of depreciation: 7. The learned Assessing Officer observed that the assessee had claimed depreciation on the building which was let out. It was al....