2019 (11) TMI 1450

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....61 (hereinafter referred to as Act) dated 15/12/2016 by the ld. Dy. Commissioner of Income tax, Central Circle-4(1), Mumbai (hereinafter referred to as ld. AO). ITA NO.6228/Mum/2018 (Revenue Appeal) - AY.2004-05 2. Both the parties before us mutually agreed that this revenue appeal is to be dismissed as not maintainable in view of the recent Circular issued by the CBDT dated 08/08/2019 wherein the revenue has been directed to withdraw the appeal preferred by it before the Tribunal if the tax effect on the disputed issues is less than or equal to Rs. 50,00,000/-. It is well settled that this Circular is binding on the revenue authorities. 3. Respectfully following the said Circular, the appeal filed by the revenue is dismissed as not mai....

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....We find that the ld. AO disallowed the claim of deduction of interest u/s.57 of the Act in the sum of Rs. 2,19,69,050/- on the ground that the said liability is provisional as well as contingent in nature. The ld. AO had also observed that the assessee was claiming interest expenditure on the amount outstanding to the said related notified broker entities, however, these broker entities were not charging on the other clients. 7.1. It is not in dispute that the assessee is notified person under the provisions of Special Courts (Trial of Offences Relating to Transactions in Securities) Act, 1992 since 08/06/1992 and in view of the notification issued by the Hon'ble Special Court, the properties of the applicants were vested with the custodia....

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....66,341/- 3. Loan to M/s. Harshad S Mehta - Rs. 47,37,93,346/- 7.2. From the details provided in the balance sheet as on 31.3.2013 and 31.3.2014, we find that the own funds of the assessee in the form of capital account balance was Rs. 70,22,40,565/- as on 31/03/2014 and Rs. 70,03,89,126/- as on 31/03/2013. The ld. AR pleaded that the amounts were paid to Shri Harshad S Mehta in the sum of Rs. 47,37,93,346/- out of withdrawal of fixed deposits kept with various banks and as per the directions of Hon'ble Special Court. Hence, there cannot be any charging of interest on the said loans paid to Shri Harshad S Mehta by the assessee. We find lot of force in the said argument of the ld. AR that when the amounts were advanced to certain notified....