2016 (5) TMI 1507

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....g rental income of Rs. 30,29,390/- from M/s. Choradia Fashions Pvt. Ltd., in respect of Shiv Sagar Estate particularly when that income was taxed in the hands of Shri J M Shah as the property was already transferred by the assessee to him on 1st Jan. 2005 in pursuance of permission of the appropriate authority under section 269UL(3) of the Act dated 4th March 1995. 3. During hearing our attention was invited by the learned counsel for the assessee to an declaration under section 158A(1) of the Income Tax Act, 1961 (hereinafter the Act) (form No.8) claiming that identical question of law is pending before the Hon'ble High Court. The learned DR contended that this issue has already been decided against the assessee by the Tribunal. The cla....

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....able being on different facts by explaining that liability crystallized in A Y 2007-08 and demand was raised on 18.09.2006. Our attention was invited to a certificate from Canara Bank dated 20.09.1997 by claiming that either the same can be allowed u/s. 37 of the Act for which reliance was placed upon the decision in 250 ITR 279 (Madras) or alternatively u/s. 43B for which reliance was placed in 203 ITR 375 (Cal.); 77 Taxman 628 (Cal). On the other hand, the learned DR defended the conclusion arrived at in the impugned order. 6. We have considered the rival submissions and perused the material available on record. The facts in brief are that the Collector of customs levied customs duty and penalty on the goods imported by the assessee in....

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....on delayed payment is allowable expenditure or not. There is no dispute to the fact that the assessee made the payment of the interest also. In such a situation, we are of the view that the payment of interest is an allowable deduction u/s. 37(1) of the Income Tax Act. The Hon'ble Apex Court in Mahalaxmi Sugar Mills Co. vs. CIT (1980) 123 ITR 429 (SC), reversing (1972) 85 ITR 320 (Delhi) held that interest paid for delayed payment of such taxes is a deductible item of expenditure. The ratio laid down in Kamlapat Motilal vs. CIT (104 ITR 783) (Allahabad) and Russel Properties Pvt. Ltd. (1982) 137 ITR 358 (Cal). In view of the decision from Hon'ble Apex Court in Mahalaxmi Sugar Mills case (supra), the following decisions were impliedly overru....

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....High Court or before the Hon'ble Apex Court and contested a legal battle, though failed, but fact remains that the customs duty as well as interest on delayed payments was made by the assessee. Demand was raised by the department on 18.09.2006 therefore liability arose in the present assessment year. Thus, the deduction has to be allowed either u/s. 37 or u/s. 43B of the Act. Therefore, this ground of the assessee is allowed. 9. Thus, the appeal of the assessee is partly allowed and disposed off in terms indicated hereinabove. 10. Now we shall take up the appeal for A.Y. 2008-09 (ITA No. 4937/Mum/2012), wherein, the only ground raised pertains to confirming the rental income of Rs. 33,93,939/- from M/s Choradia Fashions Pvt. Ltd, i....