TaxTMI 
TaxTMI 
TaxTMI 
2012 (11) TMI 1291
X X X X Extracts X X X X
X X X X Extracts X X X X
....sessee's contention that the said expenses were incurred during the normal course of its business to comply with various statutory requirements and for running the operations of the company. Therefore, the disallowance of ₹ 76,84,919/-under section 14A be deleted. 2.The Learned CIT(A) erred in law in confirming disallowance of Bad Debts written off i.e. interest income on non-performing assets amounting to ₹ 47,57,700/- out of ₹ 55,05,644/-" 2. The facts in brief for adjudication of the Ground No.1, are that the assessee company, a non-banking financial institution, had filed its return of income on 14-11-2006 declaring total income at ₹ 54,46,970/-. The case was selected for scrutiny in CASS system and assessment....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f Bombay has held that provisions of Rule 8D are applicable from the assessment year 2008-09. Respectfully following the order of the Hon'ble Bombay High Court in the case of Godrej Boyce & Mfg. Co(supra), we reverse the order of the FAA. In the interest of justice, matter is being restored back to the file of the AO to decide the issue of disallowance, if any, in fresh proceedings. He is directed to afford a reasonable opportunity of hearing to the assessee. Ground No.1 is partly allowed in favour of the assessee. 6. The next ground of appeal is about disallowance of Bad Debts of amounting to ₹ 44.57 lakhs out of ₹ 55.05 lakhs. While framing the assessment the AO found that the assessee had debited expenses on account of reve....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Limited in financial year 2004-05, that these OCDs were matured in the year 2001, that these assets were classified as mature debentures by the Jindal Vijaynagar Steel Limited, that the claim of the assessee about acquiring the OCDs in the year 2003-04, 2004-05 & 2005-06 was not correct. He held that the claim of the assessee about reversal of interest income of non-performing assets could not be accepted, that the guidelines issued by the RBI to NFBC were only disclosure guidelines, that the said guidelines did not override the provisions of the Act. Relying upon the order of the Hon'ble Supreme Court delivered in the case of M/s Southern Technologies Limited, in ITA 1337/2003, he held that the assessee was not entitled to deduction on ac....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s rejoinder AR submitted that the company was declared NBFC only in September, 2005, that interest on NPA was written off in the books of accounts, that conditions for writing off the interest were fulfilled, that all the necessary facts of the case were submitted before AO during the assessment proceedings. 9. We have heard the rival submissions and perused the material before us. The undisputed facts of the case emerging from the file can be summarised as under :- i).Pursuant to a Scheme of Arrangement and Amalgamation between Jindal Iron & Steel Ltd (JISL) and Jindal Vijayanagar Steel Ltd (JVSL) Investment Portfolio consisting of Investments and Loans & Advances had been transferred to the Company and the Steel business was merged in ....