2015 (12) TMI 1830

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....bility of the assessee to claim exemption u/s 10(23G) of the Act on the interest income of Rs. 7.80 crores. The AO denied the exemption on the ground that the assessee has not earned the interest income out of investment activities, but out of business activities and the Ld CIT(A) also confirmed the same. 3. Identical issue has been decided in favour of the assessee by the co-ordinate bench of Tribunal in AY 2004-05 in the assessee's own case in ITA No.3325/Mum/2009 and CO No.243/Mum/2009 in the order dated 18.3.2010 and the same was also followed by the Tribunal in the assessee's own case in AY 2002-03 in ITA No.2510/Mum/2011 in the order dated 29.10.2014. It was further submitted that the order passed by the Tribunal for AY 2004-05 has since been upheld by the Hon'ble Bombay High Court in its order dated 25.11.2012 passed in ITA No.6983 of 2010. Hence, following the above said order, we set aside the order of Ld CIT(A) and direct the AO to allow exemption u/s 10(23G) of the Act. 4. We shall now take up the appeal filed by the revenue for AY 2003-04. The first issue relates to rejecting of the claim of the assessee that the loss arising on sale of investment is a business loss.....

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.... Performing assets" on accrual basis. The Ld A.R submitted that this issue is covered by the decision rendered by the Tribunal in the assessee's own case for AY 2004-05 (referred supra), wherein the Tribunal has decided this issue in favour of the assessee. He further submitted that the decision taken by the Tribunal was in accordance with the decision rendered by the Hon'ble Bombay High Court in the case of CIT Vs. KEC Holdings Limited (ITA No.221 of 2012 dated 11.06.2014). Hence, consistent with the view taken by the Tribunal in the assessee's own case, se set aside the order of Ld CIT(A) on this issue and direct the AO to delete this addition. 9. The next issue relates to the rejection of claim of Bad debts written off relating to the TDS certificate not received by the assessee. The Ld A.R submitted that an identical issue was considered by the Tribunal in the case of Indian Products Trading Co Pvt Ltd Vs. ITO (ITA No.4509/Mum/2009 dated 30-09-2010), wherein it was held as under:- "....It is not correct to say that once the debtor has withheld the amount towards TDS, he ceases to be a debtor to the assessee for this amount. The debtor would continue to owe this amount to t....

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....ent expenses, we sustain an addition of 10% of expenses and modify the order of Ld CIT(A) accordingly. In the case of advertisement and publicity expenses, we sustain the addition of Rs. 1.00 lakh pertaining to the donation made to Doon School and Dutch National daily and 10% of the remaining portion of the expenses listed out in the table given in page 32 of the assessment order. The order of Ld CIT(A) stands modified accordingly. 11. The next issue urged by the assessee relates to the short credit of TDS. We direct the assessing officer to look into it and decide the same in accordance with the law, after giving opportunity of being heard to the assessee. 12. We shall now take up the appeal filed by the revenue for AY 2005-06. The first issue relates to the disallowance of "write off of the loan" as irrecoverable. This issue is covered by the decision of the Tribunal rendered in the assessee's own case for AY 2004-05 (referred supra). Accordingly, we uphold the order of Ld CIT(A) on this issue. 13. The next issue relates to the disallowance of write off of deposit of Rs. 46.50 lakhs as irrecoverable. The assessee had given a deposit of Rs. 46.50 lakhs to a land lord as depos....

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...., the assessee submitted that it had incurred expenses through their employees for an on behalf of "Yes Bank" while executing the joint project which did not materialize ultimately and since the amount was not recoverable from "Yes Bank", it has been written off. However, we notice that the assessee failed to file details of expenditures, purpose for which it was incurred, how it was incurred and how it was not recoverable from "Yes Bank" and steps taken for recovery of the same etc., either before the AO or before Ld CIT(A). In our view, the relevant details are necessary in order to decide about the allowability of this expenditure. Accordingly, we modify the order of ld. CIT(A) and restore the same to the file of the AO in order to provide an opportunity to the assessee to furnish relevant details. We shall make it clear that the addition made by the AO shall be sustained, if the assessee fails to furnish the details to the satisfaction of the AO. 16. We shall now take up the appeals for the assessment year 2006-07 17. The first issue urged by the assessee relates to the claim put forth before the ld.CIT(A) for the first time with regard to amount of Rs. 10 lakhs refunded by....