TaxTMI 
TaxTMI 
2015 (9) TMI 1695
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....see submitted that lower authorities did not consider the judgment of Hon'ble Apex Court in the case of T. R. F. Ltd v. CIT [(2010) 323 ITR 397] ; CIT v. Amalgamations P. Ltd [(1997) (226 ITR 188)] and that of Delhi Third Member decision of this Tribunal in the case of Poysha Oxygen (P) Ltd v. ACIT [(2008) (19 SOT 711). As per the Ld. AR, amount lent by assessee to one M/s. PIE Education Pvt. Ltd, was written off as bad debt in the course of assessee's business. Ld. AR relying on paper book page no.15, submitted that assessee was in the business of lending money and this was clearly demonstrated by the interest earned and paid by the assessee during various financial years starting from F. Ys. 2004-05 to 2013-14. As per the Ld. AR interest earned for the impugned assessment year itself came to Rs. 9,818,325/-. Further as per the Ld. AR, assessee had all along shown interest income as business income and this was accepted by the AO for all the years. Relying on the Memorandum of Association, placed in paper book pages.5 to 14, Ld. AR submitted that incidental objects of the assessee clearly mentioned its power to do business of lending money. Again as per the Ld. AR, assessee was th....
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....ed above, had nothing to do with any education or training of students. Coming to the claim of assessee that it lent money in its ordinary course of business, this could have been true if assessee had charged interest on such loan at any point of time. It is an admitted position that assessee had not charged any interest on the loan given by it to M/s. PIE Education P. Ltd.. Section 36(2)(i) of the Act, is reproduced hereunder : (2) In making any deduction for a bad debt or part thereof, the following provisions shall apply- (i) no such deduction shall be allowed unless such debt or part thereof has been taken into account in computing the income of the assessee of the previous year in which the amount of such debt or part thereof is written off or of an earlier previous year, or represents money lent in the ordinary course of the business of banking or money-lending which is carried on by the assessee ; 07. When assessee itself had not charged any interest on the amount advanced, it cannot say that any income from such loans were taken into account for computing its total income. For the simple reason that assessee had never charged any interest on the loan to....
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....had charged no interest from PIE Education P. Ltd. 13. Coming to the Third Member decision of Delhi Bench in the case of Poysha Oxygen (P) Ltd (supra), relied on by the Ld. AR, there was an agreement entered by assessee with the borrower wherein the rate of interest of 30.5% was clearly specified. It was held that solitary transaction by itself could not be considered as an impediment for construing the meaning of money lending business. As against this, assessee here had advanced the money to PIE Education P. Ltd without any agreement regarding interest and that too not as a part of its lending activity, if at all it had any. 14. In our opinion, none of these decisions would come to the aid of assessee. Lower authorities were justified in disallowing the sum of Rs. 4,86,14,074/-. Ground.3 of the assessee is dismissed. 15. Vis-a-vis ground 4, Ld. AR submitted that his sole grievance was that the disallowance u/s.14A of the Act made on account of assessee's own submission, was considered by the AO as a disallowance made by the latter. AO's finding in relation to the disallowance u/s.14A of the Act, is reproduced hereunder : 16. It is clear that assessee had itself worked....
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....n computer hardware and software, all electronic goods/accessories, to undertake research and to develop technology, applications in information systems and other computer based systems more particularly development of Internet based project information, management solutions, to take up projects on turn key basis and to develop custom software, to provide total compute resolutions involving consultancy, systems study, business process reengineering selection of computer hardware and software, software development, education and training in technical and all other fields, back office operations and call centres, data processing, medical transcription, business process outsourcing, multimedia, e-commerce and business, web designing, hardware and software maintenance and other services, licensing software and programs of all descriptions and in all fields of information technology. 3. To assist, facilitate, support, advise, act as agents, participate in development, setting up, establishing other companies, firms, etc., in all types of products, goods & services and any other activity germane and essential to the achievement of the....