TaxTMI 
TaxTMI 
2018 (12) TMI 698
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....he assessment year 1999- 2000, there are two appeals filed - ITA Nos.3/2010 and 23/2010 - arising from orders under Sections 143(3) and 147 of the Income Tax Act, 1961 ('Act', for short). There are also more than one appeal filed in many of the assessment years. There are also years in which appeals were filed by the Department and the assessee-Bank before the Tribunal, and the Tribunal having held in favour of the assessee-Bank, the Department has filed appeals for the said years arising from those orders of the Tribunal. There are common issues in many of the appeals, which shall be dealt with together. 2. In ITA No.3/2010, the following questions arise for consideration:- "(1) Whether, on the facts and in the circumst....
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....granted by the first appellate authority. 4. The second question in ITA No.3/2010 is also covered in favour of the assessee as found by the Honourable Supreme Court in (2018) 404 ITR 409 (SC) [Commissioner of Income Tax v. Virtual Soft Systems Ltd.]. The issue of lease equalization charges arose in the context of the assessee claiming the lease rentals to be adjusted towards the cost of acquisition of the property or machinery, which is leased out. The Guidance Note of the Institute of Chartered Accountants of India providing for separation of capital recovery element and finance income has been approved by the Honourable Supreme Court in the aforesaid decision. Hence, the said question also has to be answered in favour of the assessee a....
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.... (2008) 305 ITR 409 [Commissioner of Income Tax-IV v. HCL Comnet Systems and Services Ltd.] categorically held that the addition made under clause(c); of the provision for bad and doubtful debts cannot be permitted. However, clause (g) as noticed in the question has now been introduced, which has retrospective effect from 01.04.1998 onwards. We notice that when the Tribunal considered the issue, clause (g) was not introduced, which was introduced by the Finance Act, 2009. In such circumstances, it is only appropriate that the Tribunal considers the issue afresh on the basis of the facts and the specific provision of bad and doubtful debts as provided for by the assessee- Bank. ITA No.23/2010, hence, shall stand remanded. The parties shall a....
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....urity. We are of the view that the Tribunal rightly upheld the assessee's entitlement to write-off of the loss in instalments. Consequently the departmental appeal is dismissed." The Revenue had filed a Special Leave Petition against the fore quoted judgment, which has been dismissed by order dated 18.10.2010 in CC No.15556/2010. Hence, the question is answered in favour of the assessee and against the Revenue. 8. One other issue arising in ITA Nos.85 and 82/2010 for the assessment years 2003-04 and 2004-05, respectively, is the disallowance of depreciation in respect of the current category of investments. The aforesaid issue is connected with the additions made for appreciation in the value of securities which also arise in ITA ....
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....Rs. 105/-, the question is as to what is the addition to be made. Then, what is to be adopted is the cost price, since what is required as per the RBI guidelines is to show the profits in accordance with the cost price or the market value whichever is lower. The question of additions made for appreciation in the value of securities also has to be answered in favour of the assessee and against the Revenue. 10. Yet another issue arising in ITA Nos.85 and 82/2010 for the assessment years 2003-04 and 2004-05 is as to whether the excess bad debts written off over and above the existing provisions in nonrural branches can be claimed as an expense without setting off against the existing provision for bad debts for rural branches. The question ....