TaxTMI 
TaxTMI 
2016 (12) TMI 1800
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.... the Revenue are directed against the order of the Commissioner of Income Tax (Appeals) -V, Chennai, dated 25.02.2014 and pertain to assessment year 2009-10. Therefore, we heard both the appeals together and disposing of the same by this common order. Let's first take assessee's appeal in I.T.A. No.1418/Mds/2014. 2. The first issue arises for consideration is disallowance of club expenses to the extent of Rs. 1,17,478/-. 3. Sh. R. Vijayaraghavan, the Ld.counsel for the assessee, submitted that he is not pressing this ground. The Ld.counsel made an endorsement to this effect in the appeal folder. The Ld. D.R. has no objection to dismiss this ground as not pressed. 4. In view of the above, the ground relating to disallowance of cl....
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....rd limb provides for 0.5% of investment, income from which does not form part of the total income. The assessee now claims that no investment was made during the year under consideration. However, the balance sheet is not available on the file of this Tribunal. Therefore, we are unable to verify the claim of the assessee. We are also unable to accept the claim of the assessee that there was no direct expenditure, therefore, Rule 8D(2)(i) is not applicable. The assessee claims that investment was made in the subsidiary companies and group companies. The assessee could not explain how the companies in which the investment was made, were sister concerns or group concerns of the assessee. The shareholding pattern of the companies in which the i....
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....essing Officer. The Assessing Officer shall re-examine the matter afresh and bring on record shareholding pattern of the companies in which the investment was made by the assessee and how the companies outside India are subsidiary companies of the assessee and thereafter decide the issue in accordance with law, after giving a reasonable opportunity to the assessee. 9. The next ground of appeal is with regard bad debts written off to the extent of Rs. 8,22,569/-. The Ld.counsel for the assessee very fairly submitted that he is not pressing this ground. The Ld.counsel has also made endorsement in the appeal folder. The Ld. D.R. has no objection to dismiss this ground as not pressed. Accordingly, the ground raised by the assessee with regar....
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.... on the basis of happening of some event. The tax was already levied, therefore, according to the Ld. counsel, it is not a contingent liability, hence, the Assessing Officer is not justified in disallowing the claim of the assessee. 13. On the contrary, Sh. Pathlavath Peerya, the Ld. Departmental Representative, submitted that Explanation 1(c) to Section 115JB of the Act clearly says that the book profit computed under the Companies Act, 1956 has to be increased by the amount provided for meeting other than the ascertained liability. In the case before us, according to the Ld. D.R., though a demand was raised in the form of electricity tax, the assessee has challenged the same before the High Court and the High Court stayed the payment o....
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....find any reason to interfere with the order of the lower authority and accordingly the same is confirmed. 15. Now coming to Revenue's appeal in I.T.A. No.1821/Mds/2014, the only issue arises for consideration is disallowance of proportionate interest expenses on the funds diverted to associate companies. 16. Sh. Pathlavath Peerya, the Ld. Departmental Representative, submitted that the assessee borrowed funds for business purpose in India and invested the same in companies at Dubai and Jordon. The income of the companies at Jordon and Dubai is not taxable in India. However, the assessee claims that the investment made in those companies from the borrowed funds was for business purpose. According to the Ld. D.R., the funds diverted to ....
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....nding during the year under consideration. Therefore, we have to examine how much funds were borrowed and whether there was any nexus between borrowed funds and investment made in Dubai and Jordon. The shareholding pattern of those companies is also not known. Since these facts were not available on record and the same were also not examined by earlier Bench of this Tribunal during the assessment year 2000-01, this Tribunal is of the considered opinion that the matter needs to be reexamined. Accordingly, the orders of the authorities below are set aside and disallowance of proportionate interest expenses on the advance made to group companies are remitted back to the file of the Assessing Officer. The Assessing Officer shall re-examine the ....