TaxTMI 
TaxTMI 
2020 (11) TMI 345
X X X X Extracts X X X X
X X X X Extracts X X X X
....xpenditure, without appreciating that the assessee does not have the liability of payment of Municipal Taxes and the interest should have been charged on the money advanced as held by the assessing authority? (ii) Whether on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the amount of Rs. 7,00,00,000 advanced by the assessee to M/s. Hinduja Investments Pvt. Ltd, which is a sister concern of the assessee, towards acquisition/identifying and liaison of a textile Aparel Park, without appreciating that the loan given was to help the sister concern which is separate legal entity and assessee had not benefit from it and as such assessee had diverted the borrowed fund to this extent? (iii) Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the disallowance made under section 14A should not be added to the Book Profits of the assessee under section 115JB despite the explicit provisions of Clause (i) of Explanation (1) to section 115JB? (iv) Whether on the facts and in the circumstances of the case, the Tribunal was right in law in deletion of portion of common expenses allocated even w....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., rates and taxes, insurance, managerial remuneration and miscellaneous expenses can be allocated in respect of claim of set off of profits earned by export oriented units against the losses of non export oriented units. It was held that there is no exemption granted to a non dividend company in this regard and therefore, the assessee is liable to tax on book profit in accordance with the provisions of Section 115JB of the Act. The Assessing Officer was directed to quantify if there are any losses to be carried forward after giving effect to the order passed by the Commissioner of Income Tax (Appeals). Accordingly, the appeal was partly allowed. 4. The revenue as well as the assessee approached the Income Tax Appellate Tribunal (hereinafter referred to as 'the tribunal' for short) by filing the appeals against the order passed by the Commissioner of Income Tax (Appeals). The assessee also filed a cross objection against the order passed by the Commissioner of Income Tax (Appeals). Both the appeals as well as the cross objections was decided by the tribunal by a common order dated 26.09.2014 and partly allowed the appeals preferred by the revenue as well as the assessee and....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r of commercial and business expediency and therefore, the first substantial question of law in fact does not arise for consideration as the same is a finding of fact. It is also submitted that disallowance computed under Section 14A of the Act pertains to computation of income under normal provisions of the Act and the same cannot be read into Section 115JB of the Act pertaining computation of book profits for levy of Minimum Alternate Tax (MAT). It is also pointed out that there is no express provision in clause (f) of Explanation 1 to Section 115JB of the Act. It is also urged that common expenses incurred by the assessee exclusively pertain to non export unit and do not require allocation across all units. It is further submitted that no substantial questions of law arises for consideration in this appeal. In support of aforesaid submissions, reliance has been placed on decisions in S.A.BUILDERS LTD. supra and 'COMMISSIONER OF INCOME-TAX VS. SRIDEVI ENTERPRISES, 192 ITR 165. 7. We have considered the submissions made by learned counsel for the parties and have perused the record. The assessee paid a sum of Rs. 29.17 Crores on account of business transactions in relation t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....oresaid sum is the opening balance as on 01.04.2007. 9. Thus, from perusal of the aforesaid extracted portion of the order of the tribunal, it is evident that the assessee has not let in any evidence to establish the fact that the amount was either advanced for business purpose or for commercial expediency and it was not the case of the assessee itself that the amount was advanced in previous year. The Commissioner of Income Tax (Appeals) has recorded a finding that the assessee has neither acquired the land nor has set up any SEZ. Therefore, in the fact situation of the case, we deem it appropriate to remit the matter for re consideration to the tribunal afresh. Accordingly, the second substantial question of law is answered. 10. The Commissioner of Income Tax (Appeals) has held that as per Section 115JB of the Act, the assessee being a company is liable to tax on book profits in accordance with the aforesaid provision and there is no exemption granted to the non dividend company in this regard. However, the tribunal by placing reliance on decision of the Supreme Court in APOLLO TYRES, 255 ITR 273 (SC) has held that Assessing Officer while determining book profits under Section ....