TaxTMI 
TaxTMI 
TaxTMI 
2022 (10) TMI 1265
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....ulting into net disallowance of Rs. 2,31,17,869/- against the exempted income of dividend and other tax free income of Rs. 3,87,57,263/-. 3. That without prejudice to ground no 1 above and on the facts and circumstances of the case and provisions of the law, the Ld. AO as well as Ld. CIT (A) erred in making/confirming the disallowance of Rs. 2,33,02,768/- in respect of amortisation of premium paid at the time of purchase of securities over the remaining period of securities. 4. That without prejudice to ground no 1 above and on the facts and circumstances of the case and provisions of the law, the Ld. AO as well as Ld. CIT (A) erred in not allowing the loss on sale of obsolete stationery items during the course of business of Rs. 56,66,140/- besides the loss on sale of other petty items of Rs. 54,860/- aggregating to Rs. 57,21,000/-." 3. Apropos issue relating to Ground No. 1 : In this ground, the assessee has alleged that ld. CIT (A) has passed the order in the name of Haryana Gramin Bank (now Sarva Haryana Gramin Bank). It is the contention of the assessee that the appellate order has been passed in the case of a bank which is no longer in ....
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....f the AO. 7. Against this order, assessee filed an appeal before us. We have heard both the parties and perused the record. 8. Assessee reiterated that assessee has sufficient interest free funds to make investment in tax free bonds/debentures/mutual funds/shares etc. and bank has not incurred any interest expenditure. In this regard, assessee has referred to the decision of Maruti Udyog Ltd. vs. DCIT 92 ITD 119 (Del.). Certain other case laws have been referred and also referred the decision of ITAT in assessee's own case in ITA No. 4073/Del/2018 for AY 2014-15 order dated 25.10.2021. 9. Per contra, ld. DR for the Revenue relied upon the orders of the authorities below. 10. We note that ITAT in assessee's own case for AY 2014-15 (supra) has dealt with the same issue and deleted the addition by holding as under:- "10. We have heard the rival contentions and perused the material available on record. We find merit into the contentions of the Ld. Counsel for the assessee that Ld.CIT (A) has misdirected himself by wrongly applying the ratio of the judgement of Hon'ble Supreme Court in the case of Maxopp Investment Ltd. vs CIT (supra). Infact, the judgement of Hon'ble Supreme....
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....as not been established between expenditure disallowed and earning of exempt income. The respondents as earlier noted, have failed to substantiate their argument that assessee was required to maintain separate accounts. Their reliance on Honda Siel (Supra) to project such an obligation on the assessee, is already negated. The learned counsel for the revenue has failed to refer to any statutory provision which obligate the assessee to maintain separate accounts which might justify proportionate disallowance. 29. In the above context, the following saying of Adam Smith in his seminal work - The Wealth of Nations may aptly be quoted: "The tax which each individual is bound to pay ought to be certain and not arbitrary. The time of payment, the manner of payment, the quantity to be paid ought all to be clear and plain to the contributor and to every other person." Echoing what was said by the 18th century economist, it needs to be observed here that in taxation regime, there is no room for presumption and nothing can be taken to be implied. The tax an individual or a corporate is required to pay, is a matter of planning for a tax payer and the Government should endeavour to keep i....
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....t ITAT in assessee's own case in earlier assessment year i.e. AY 2014-15 has deleted the similar addition made by the Revenue authorities. 16. We note that the ITAT in assessee's own case for AY 2014-15 (supra) on the same issue has adjudicated as under :- "11. Ground No. 3 is against the disallowance of Rs. 62,06,818/- confirmed in respect of amortization of premium paid at the time of purchase of securities over the remaining period of securities. 12. Ld. Counsel for the assessee reiterated the submissions as made before the Ld.CIT(A). Ld. Counsel for the assessee submitted that the assessee company being a banking company had to hold investment as per RBI norms in HTM ("held to maturity") category and in this investment when the cost price was more than the face value than premium was spread over the period of holding. It was contended that this practice is continuously followed by the assessee and accepted by the Revenue in earlier years also and this practice had been duly disclosed in Schedule 17. It is further contended that the Assessing Officer wrongly interpreted the CBDT Circular No. 17 dated 26.11.2008. However, Ld.CIT (A) did not accept the contenti....
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....7.21 lacs on account of loss on sale of land, building and other asset. AO enquired from the assessee about them. He reproduced the assessee's submission as under :- "The loss on sale of land, building and other assets amounting to Rs. 57.21 lacs represent sale of old / outdated SFF items and waste items." The loss on sale amounting to Rs. 57.21 lacs represented the sale of old/ outdated items and waste items. AO observed that from the above reply, the assessee has claimed the loss on account of lost stationery and related items. That assessee failed to submit any documentary evidence and the expenses were not justified. He also held that moreover the said loss on sale of SFF items is of capital nature and not revenue nature. Referring to section 37 of the Act, he was of the opinion that the said amount was not allowable, hence he disallowed amount of Rs. 57.21 lacs. 19. Upon assessee's appeal, ld. CIT (A) in his order referred to AO's remand report which is stated that assessee has failed to justify its claim on said expenses and failed to produce/furnish copy of any vouchers, bills, supporting the same for verification and to prove beyond doubt that the said lo....