2024 (6) TMI 987

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....inst the order dated June 09, 2023 passed by the Income Tax Appellate Tribunal, Delhi Bench "A", New Delhi in ITA/1333/Del/ 2022 and ITA/1196/Del/2022 for the assessment year 2004-2005. 2. The revenue has raised the following substantial questions of law for consideration: a. Whether on the facts and in the circumstances of the case the Learned Income Tax Appellate Tribunal was justified in law by not considering the exchange rate losses amounting to Rs. 16,06,000/- was incidental to the nature of business of the assessee by not considering that the facts of the instant case is similar to the case of The Commissioner of Income Tax [IT] -4 v/s. M/s Siemens Nixdorf Information Systemse GmbH, wherein Hon'ble Bombay High Court held ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....which has clarified that the disallowance for any assessment year may not be limited to the exempt income for the said assessment year ? f. Whether on the facts and in the circumstances of the case the Learned Income Tax Appellate Tribunal was justified in law by deleting the addition of Rs. 4,36,52,375/- by holding that since the liabilities shown in 'Provision for doubtful loans & advances', are 'certain' in nature, therefore no upward adjustment u/s 115JB [2] [c] can be made in this regard, by ignoring the provisions contained in Explanation [1] [c] to the section 115JB [2] which provides that amount set aside to provisions made for meeting liabilities, other than ascertained liabilities has to be increased for the purpose of co....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Hon'ble Supreme Court affirmed the interpretation given by the learned Tribunal as well as the High Court as it related to one particular transaction. Therefore, the Court did not go into the other aspects of the mater. Therefore, both the decisions relied on by the revenue will not be of any assistance to their case. 7. In the result, the substantial questions of law Nos. A and B are answered against the revenue. 8. So far the substantial question of law No. "C" is concerned, this pertains to allowing the insurance and audit fees expenses amounting to Rs. 96,609/- on the ground that the agreement between assessee and Ballarpur Industries did not cover the said expenses. We have gone through the factual findings recorded both by the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he ld. CIT (A) presume that Assessing Officer might have invoked provisions of section 115JB (2) (c) of the Act by treating the loans and advances which are actually return of as doubtful. However, the assessee consistently submitting that the impugned loss is real and such loss has been debited to the P&L account under the head provision for doubtful loans and advances. It was further submitted that from the perusal of audited account it is clear that the same was return of in the account as irrecoverable though the nomenclature was used as provision. On being asked by the bench the ld. Senior DR could not show us any factual matrix which may lead us to take a view that the impugned amount was not certain and was merely a provision. Thus t....