TaxTMI 
TaxTMI 
2025 (8) TMI 683
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....arising out of the orders of the Assessing Officer under Section 143(3) read with section 153B(1)(b) of the Act. 2. For issue-wise adjudication, we take first the appeal of the Revenue in IT(SS)A.No.27/Ahd/2021 for Asst. Year 2006-07. 3. IT(SS)A.No.27/Ahd/2021 : (Revenue's appeal for A.Y. 2006-07 Ground No.1 : Whether the Ld. CIT(A) has erred in deleting the disallowance of depreciation on goodwill of Rs. 2,53,45,655/- without appreciating the fact that there was no block of assets for the intangibles in the books of account of the amalgamating company, therefore the same cannot be recorded in the books of accounts of the amalgamated company, in view of Explanation 7 to section 43(1) of the Act. 3.1. The assessee company was earlier known as M/s. Dintex Dyechem Ltd. In accordance with the scheme of amalgamation of M/s. Bodal Chemicals Pvt. Ltd., with erstwhile M/s Dintex Dyechem Ltd. (Bodal Chemicals Ltd.) sanctioned by the Hon'ble High Court of Gujarat vide order dated 27.04.2006, all the assets and liabilities of M/s Dintex Dychem Ltd. has been transferred to and vested in the assessee company w.e.f. 01.04.2004 and the same has been passed in the books of account of t....
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....ice u/s. 148 issued to the assessee on 11.06.2009. The action of the reopening was challenged by the assessee in the Hon'ble Gujarat High Court vide Special Civil Application No. 7 of 2010. The Hon'ble High Court stayed the conclusion of proceedings u/s. 147 till the final disposal of the petition filed by the assessee. However, since with the issuance of notice u/s. 153A (dated 09.02.2012) to the assessee pursuant to the search and seizure action taken in its case u/s. 132 of the Act, the proceedings u/s. 147 got abated. The stay order by the Hon'ble High Court in respect of the same was automatically complied with by the operation of law. As a result, the proceedings u/s. 153A r.w.s. 143(3) was not affected by the Hon'ble High Court's order and accordingly the Assessing Officer proceeded with the proceedings u/s. 153A. 3.4. The Assessing Officer observed that the assessee claimed a deduction amounting to Rs. 2,53,45,655/- as depreciation on goodwill. As per the assessee's claim this goodwill was acquired by the assessee company on amalgamation with M/s. Dintex Dye Chem Ltd. The relevant entries for creation of goodwill as explained by the assessee are as under:- Particulars....
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.... assessee company. As per the scheme of amalgamation (scheme), in addition to various physical assets recorded and accounted for in the books of BCPL and MOL (amalgamating company), several other intangibles like technical know-how for new products of BCPL and MOL, Effluent Treatment disposal entitlement rights of BCPL and MOL in common Effluent Treatment Plant for entire GIDC Vatva Industries Estate, Environmental Clearances from Government for a Chemical Plant of BCPL and MOL i.e. licenses to operate a chemical manufacturing unit, other such commercial rights, registrations, employees with their experience, customer base, export market, raw material resources, management expertise, a large banking base etc. were also part of the Undertaking transferred. These intangibles are effectively a bouquet of intangibles which are crucial factors expressly purchased by paying specifically for them and termed as Goodwill as was required by Accounting Standard-14 of the Institute of Chartered Accountants of India (ICAI). The assessee further submitted in the submissions that the said tangibles were not recorded in books of BCPL and MOL as their recording was prohibited by mandatory accountin....
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....producing income and one of the top three companies in India in this industry. As a direct result of these acquisitions and more particularly acquisition of intangibles acquired and paid for. Thus, it was for business and hence the claim was made for allowing the expenditure either as emerges expenses or depreciation on goodwill. The depreciation on goodwill is allowed in the assessment order for A.Y. 2006-07. The assessee has given copies of various premises environmental clearances, manufacturing process and other documents in support of the intangible assets related to know-how for five products, their formulations and production, techniques/technologies thereof. The assessee submitted the documents of all such intangible and allocation, total payment of Rs. 1013.82 lakhs and debited to goodwill in case of acquisition of Bodal Chemicals Pvt. Ltd. The total allocation of total amount between main intangible is based on professional and extra valuation/estimates of cost which the assessee company would have had to incur, had the intangibles were not obtained from the merging company. Rs. Lacs Intangibles Valuation Allocation of Actual Payment (Goodwill) Commercial R....
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....ee on 31.03.2016 is purely a result of valuation or re-valuation done in comparison to the claim of amalgamation of M/s. Bodal Chemical Pvt. Ltd. into the assessee company formerly known as M/s. Dintex Dyechem Ltd. While taking cognizance of the decision of the Hon'ble Apex Court in case of Smifs Securities (supra) held that solely laid down goodwill is included in the definition of intangible assets being any other business or commercial right of a similar nature. Thus, the Assessing Officer disallowed the claim of the assessee relating to allowability of depreciation on goodwill to the extent of cost of Rs. 2,53,45,655/-. Further, the Assessing Officer disallowed the assessee's adjustment claim on account of brought forward losses on computation of MAT thereby stating that the book profit is an amount higher by Rs. 3,56,51,941/- and thus assessed the total income at Rs. 1,22,75,860/-. The Assessing Officer further directed that the assessee is not allowed to carry forward any unabsorbed depreciation and business losses to the subsequent assessment years. 4. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) partly allowed the appea....
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.... allowing the depreciation on goodwill in the present assessee's case. 6. The ld. A.R. submitted that the assessee claimed depreciation on goodwill amounting to Rs. 2,53,45,655/- arising pursuant to amalgamation of M/s. Dintex Dyechem Ltd. with M/s Bodal Chemicals Private Limited. However, depreciation on goodwill was disallowed by the Ld. AO pursuant to order passed u/s 153A. The Ld. AO in his order stated that this asset is neither acquired by amalgamating entities nor resulting entity. The Ld. AR relied upon the decisions of Jurisdictional Tribunal in the case of M/s Urmin Marketing Private Limited vs. DCIT (ITA No.1806/Ahd/2019), AIA Engineering Limited - vs.- DCIT (ITA No. 397/Ahd/2024) and Suzlon Energy Limited - vs.- DCIT (ITA No. 198/Ahd/2023). The Ld. AR submitted that the goodwill arisen out of amalgamation is tax depreciable asset. It is settled position of law that intangible assets include goodwill. Accordingly, the goodwill is eligible for tax depreciation as an intangible asset as the same is in line with AS-14. The scheme of amalgamation has been approved by Hon'ble Gujarat High Court. It was clearly provided in the scheme that difference of purchase consider....
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....he case of Smifs Securities Ltd. (supra) has held that in the case of scheme of amalgamation, the difference between the cost of assets and the amount paid, constituted goodwill and that the amalgamated company in the process of amalgamation acquires capital right in the form of goodwill, as a result of which the market worth of the amalgamated company stands increased. Thus, the undisputed fact is that the goodwill was generated by the assessee company in the scheme of amalgamation and it was not transferred by the amalgamating company. The Revenue had not disputed the value of goodwill as generated by the assessee company in the course of amalgamation. It is not the case that this goodwill was generated on re-valuation of the assets. The goodwill was also identifiable with the intangible assets acquired for consideration, duly supported by independent valuation, which was not disputed by the Revenue. Such goodwill acquired against consideration constitutes a depreciable capital asset and the depreciation claimed on the goodwill was liable to be allowed u/s. 32 of the Act. There is no prohibition under the Act to disallow the depreciation on goodwill generated in the scheme of ama....
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....ibles are as follows: Rs. Lacs Intangibles Valuation Allocation of Actual Payment (Goodwill) Commercial Right to Use Common ETP 1,900.00 856.11 Technical Know How for 5 Products 250.00 112.65 Other residuary intangibles 100.00 45.06 Total 2,250.00 1,013.82 But whether these details were looked into or mentioned by the both the parties before the Tribunal is not mentioned in the said order dated 16.10.2019. In fact the said order is also not mentioning that the proceedings under Section 153A was started on 09.10.2012 and was concluded by passing assessment order under Section 143(3) r.w.s. 153A vide assessment order dated 21.03.2014. Thus, the finding given in para 12 in the said order of the Tribunal is on presumption. Besides this the observation that the impugned transaction for claiming the deduction on account of the depreciation is an arrangement for claiming the higher depreciation will also not sustain if the Tribunal has been given the valuation of intangibles and its actual allocation relating to goodwill as mentioned in the Table hereinabove. So this cannot be termed as arrangement but the same is actu....
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....to undermining the judicial sanctity of the order of the Hon'ble High Court which has attained the finality. Once the Revenue has accepted the goodwill recorded being part of the consideration structure approved by the Hon'ble High Court the same has to be accepted for taxation purpose. The Hon'ble Apex Court in case of Smifs Securities Ltd. (supra) recognized that where goodwill is acquired against consideration, it constitutes depreciable capital assets. Thus, prior to the amendment brought by the Finance Act, 2021 the same has to be allowed by the Revenue. Thus, the CIT(A) has rightly allowed the same and there is no need to interfere with the findings of the CIT(A). Thus, Ground No. 1 of Revenue's appeal is dismissed. 8. Ground No. 2: Whether the Ld. CIT(A) has erred in allowing the deduction of unabsorbed business loss/depreciation under clause (iii) of explanation (1) to Section 115JB(2) without appreciating the fact that there was accumulated profit in the books of the assessee on account of amalgamation. 8.1. The Ld. DR submitted that it is a matter of fact that after adjustment of credit balance of general reserve & accumulated balances of amalgamation company, the q....
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....e always created out of accumulated profits. General Reserves can be created in many ways including following transactions; general reserves can arise out of revaluation of certain assets due to amalgamation. The Ld. AR relied upon the decision of Mumbai Tribunal in the case of ITO vs. United Estates Pvt. Ltd (20 taxmann.com 588). In the present case from Note-15 of Audited Financials of FY 2001-02 it is clear that general reserve was created on amalgamation of three other companies with M/s Bodal Chemicals Pvt. Ltd as per the approved scheme of Hon'ble Gujarat High Court. As regards to last day of Immediately preceding year should be considered as per Section 115JB, without prejudice to above the Ld. AR further submitted that calculation should be made as per P&L Account and the loss brought forward from earlier year i.e. Losses brought forward of Rs. 11,37,52,126/- as on 01.04.2005 should be considered for calculation of Book Profit as per provisions of Section 115JB of the Act and any adjustment made for adjusting accumulated profits of M/s Bodal Chemicals Pvt. Ltd should not be considered as the necessary entries giving effect to amalgamation was passed after 01.04.2005 as ....
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....4/2005 [(C)= (A-B)] 59,751,071 4,001,055 63,752,126 D Status of accumulated profits n the books of M/s Bodal Chemicals Pvt Ltd as on 31/03/2005: 1 General Reserve of M/s Bodal Chemicals Pvt Ltd as on 01.04.2005 30,033,755 4,001,055 34,034,810 2 P/L Account Cr. Balance of M/s Bodal Chemicals Pvt Ltd as on 31.03.2005 23,990,048 23,990,048 Status of accumulated profits n the books of M/s Bodal Chemicals Pvt Ltd as on 01/04/2005 (D) 54,023,803 4,001,055 58,024,858 B/f Losses as per the books of M/s Bodal Chemicals Ltd as on 01/04/2005 [(C) - (D)] 5,727,268 - 5,727,268 Since the business loss re-worked by the Assessing Officer was Nil, no deduction was allowed on account of unabsorbed business loss/depreciation in the computation of book profit, as the lower of the two figures was required to be taken into consideration. 10.2 It is found that in working out the unabsorbed depreciation and business loss for computation of book profit u/s. 115JB of the Act, the Assessing Officer had taken into account the general reserve of M/s Bodal Chemical Ltd., pre- and post-amalgamation.....
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....s is of Rs 3,56,51,941/- and brought forward unabsorbed depreciation of Rs 4,83,37,429/- and hence, as per the assessee, brought forward business loss of Rs 356.51 lakhs being lower than brought forward unabsorbed depreciation should be reduced from the book profit to be computed u/s. 115JB. But the A.O. was not satisfied. He has re worked such working on page 3 of the assessment order and has worked out that when year-wise figure of business loss or depreciation whichever is lower is taken, the assessee is eligible for deduction of Rs 213.32 lakhs only. When the assessee carried the matter before the Ld CIT (A), the Ld. CIT (A) directed the A.O to consider unabsorbed depreciation and business losses together for all the years for computing the book profit u/s 115JB and while giving direction to the A.O, the Ld CIT(A) has followed the Tribunal decision in the case of Amline Textiles (P) Ltd.(supra). As per this Tribunal decision, aggregate amount of loss brought forward or unabsorbed depreciation, whichever is less as per the books of account is allowable deduction in computing the book profit u/s. 115JB. We find that the direction given by the Ld CIT (A) is somewhat confusing and ....
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....of the block period u/s 158BB was to be made on the basis of evidence found as a result of search of requisition of books of accounts, there is no such stipulation in sec. 153A and sec. 153BI specifically states that the provisions of Chapter-XIV-B, under which sec. 158BB falls would not be applied where a search was initiated u/s 132 after 31/5/2003. 4. On the facts and in the circumstances of the case and in law, the ld. CIT(A) has erred in not appreciating that assessment in relation to certain issues not related to the search and seizure may arise in any of the said six assessment years after the search u/s. 132 is conducted in the case of the assessee, and that if the interpretation of the ld. CIT(A) were to hold it will not be possible to assess such income in the 153A proceedings, while no other parallel proceedings to assess such other income can be initiated leading to no possibility of assessing such other income, which could not have been the intention of the legislature. Further, the AO is duty bound to assess correct income of assessee as held in various judgments." Ground No.1 to 4 : Initiation of search proceedings is bad in law and unlawful as the order ....
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.... Hiralat Shah vs. ACIT (IT (881 A No. 100 to 108 / Ahd / 2021). iv. Shri Dineshbhai P. Sarothia vs. ACIT (ITA No. 744 / RJJ / 2014). v. ACIT vs. Shardaben Arvindbhai Patel (IT(SS)A No. 448 & 465/ AHP/2019). vi. Ankur Chemfood Limited vs. Pr. CIT (ITA No. 93 / Ahd / 20211. vii. DCIT vs. Amit Madanlal Gupta (IT(SS)A No. 23 / Ahd / 2021). 16. We have heard both the parties and perused all the relevant material available on record. The Ld. AR, at the time of hearing, pointed out that there is no incriminating document found during the course of search which was not accounted for in the books of accounts and hence the assessment proceedings conducted by the Assessing Officer is illegal and void ab initio. From the perusal of the records, it appears that there is no incriminating material upon which the Assessing Officer has given any finding. In fact the material which was taken as base is not relevant for the present assessment year at all. Thus, the CIT(A) was right in allowing this legal ground. There is no need to interfere with the findings of the CIT(A). The case laws relied by the Ld. AR are relevant in the present case. Hence, the Ground No....
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.... i. DCIT vs. M /s. Adani Gas Ltd ITA No. 775/Ahd/2014. ii. ACIT vs. Narmada Chematur Petrochemicals Ltd [2010] 194 Taxman 103 (Gujarat) 21. We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the assessee has consistently followed exclusive method of accounting and the Revenue has not disputed this method. The CENVAT credit taxes, duties and dues are embedded in purchase of raw-materials as well as in corresponding sales. The contention of the Ld. AR that the effect of such accounting does not ultimately have any impact on the profitability when followed year after year is correct in the light of decision of the Hon'ble Gujarat High Court in the case of Narmada Chematur Petrochemicals Ltd. (supra). Thus, the Ground No. 6 is dismissed. 22. Ground No. 7 Disallowance of Set off of Unabsorbed Depreciation pertaining to AY's prior to AY 2002-03 amounting to Rs. 2,77,65,820/- 7. On the facts and circumstances of the case and in law, the Ld. CIT(A) earned in deleting the addition of Rs 2,77,65,820/- made by the A.O on account of disallowance of claim of set off of unabsorbed depreciation. 22....
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....y the AO in the assessment order and decided the appeal in favour of assessee on technical ground. 9. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) ought to have upheld the order of the AO. As relates to Ground No. 8 and 9, the same are general in nature, hence not adjudicated at this juncture. 26. Hence, IT(SS)A No. 28/Ahd/2021 for A.Y. 2007-08 filed by the Revenue is dismissed. 27. IT(SS)A.No.29/Ahd/2021 : Revenue's appeal for Asst.Year 2008-09 Grounds "1. On the facts and in the circumstances of the case and in law, the ld. CIT(A) has erred in holding that any addition during the assessment u/s. 153A has to be confined to the incriminating material found during the course of search u/s 132(1) of the Act, even though, there is no such stipulation in sec 15A of the Act. 2. On the facts and in the circumstances of the case and in law, the ld. CIT(A) has erred in not appreciating that sec. 153A requires a notice to be issued requiring the assessee to furnish his return of income in respect of each assessment year falling within six assessment years and to assess or re-assess the total income of those six ass....
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....queries were raised. In response to the same, the assessee submitted various replies however, the AO did not appreciate the facts stated there in and made additions. The AO in the order passed u/s 143(3) r.w.s 153A dated 21.03.2014 made following disallowances:- (i) Disallowance under Normal Provisions:- Depreciation on Goodwill -Rs.15,10,81,300/- Addition u/s 145A Rs. 2,10,26,875/- Disallowance u/s 14A of the Act Rs. 1,12,031/- The CIT-(A) deleted the additions made by the AO and allowed the appeal. 28. The Ld. DR submitted that the documents found was that of the assessee company only and the initiation of the proceedings u/s 153A of the Act itself are just and proper. 29. The Ld. AR submitted that in respect of the assessee's case, no incriminating documents were found during the course of search which has not been accounted in books of accounts and hence the search proceedings are illegal and void-ab-initio. The AO has failed to appreciate the fact that completed assessments can be interfered with by Assessing Officer while making assessment under section 153A only on basis of some incriminating material unearthed during course of search which was ....
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....on herein. Therefore, the Ground No. 5 is dismissed. 33. Ground No.6 : Disallowance of CENVAT Credit of Rs. 2,10,26,875/- 6. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition of Rs 2,10,26,875/- made by the A.O on account of Unutilized CENVAT Credit u/s 145A of the Act. 33.1 The same is identical to Ground No. 6 of Revenue's appeal being IT(SS)A No. 28/Ahd/2021 for AY 2007-08, hence the finding given in the said appeal hereinabove will be application herein. Therefore, the Ground No. 6 is dismissed. 34. Ground No.7 : Disallowance u/s 14A amounted to Rs. 1,12,031/-. 7. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition of Rs. 1,12,031/- made by the A.O. on account of disallowance u/s 14A of the Act. 34.1 The Ld. DR relied upon the Assessment order. 35. The Ld. AR submitted that for the year under consideration as against increase in investment of Rs. 52,04,770/- the increase in own funds were Rs. 11,63,09,979/-. It is clearly evident from same that assessee had sufficient own funds for investment. This aspect of huge surplus funds is not disputed by t....
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....espect of each assessment year falling within six assessment years and to assess or re-assess the total income of those six assessment years, and that the scheme of assessment or re-assessment of the total income of a person searched will be brought to naught if no addition is allowed to be made for those six assessment years in the absence of any seized incriminating material. 3. On the facts and in the circumstances of the case and in law, the ld. CIT(A) has erred in not appreciating that while computation of undisclosed income of the block period u/s. 158BB was to be made on the basis of evidence found as a result of search or requisition of books of accounts, there is no such stipulation in sec. 153A and sec. 153BI specifically states that the provisions of Chapter-XIV-B, under which sec. 158BB falls would not be applied where a search was initiated u/s 132 after 31/5/2003. 4. On the facts and in the circumstances of the case and in law, the ld. CIT(A) has erred in not appreciating that assessment in relation to certain issues not related to the search and seizure may arise in any of the said six assessment years after the search u/s 132 is conducted in the ca....
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.... course of search which was not produced or not already disclosed or made known in course of original assessment. The Ld. AR relied upon the following judgments:- i. Pr. CIT vs. Saumya Construction (P) Ltd. [2016] 387 ITR 529 ii. CIT vs. Kabul Chawla (2015) 61 taxmann.com 412 (Delhi HC) iii. Jignesh Hiralat Shah vs. ACIT (IT (SS) A No. 100 to 108 / Ahd / 2021). iv. Shri Dineshbhai P. Sarothia vs. ACIT (ITA No. 744 / RJJ / 2014). v. ACIT vs. Shardaben Arvindbhai Patel (IT (SS) A No. 448 & 465 / AHP / 2019). vi. Ankur Chemfood Limited vs. Pr. CIT (ITA No. 93 / Ahd / 2021). vii. DCIT vs. Amit Madanlal Gupta (IT (SS1 A No. 23 / Ahd / 2021). 42. We have heard both the parties and perused all the relevant material available on record. The Ld. AR, at the time of hearing, pointed out that there is no incriminating document found during the course of search which was not accounted for in the books of accounts and hence the search proceedings conducted by the Assessing Officer is illegal and void ab initio. From the perusal of the records, it appears that there is no incriminating material upon which the Assessing Officer has ....
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....rked to market losses are contingent in nature as they arise out of the past contracts entered into by the assessee and whether they will actually occur or not cannot be reliable estimated until the occurrence of future uncertain events which is beyond the control of the assessee. The assessee has no liability to pay difference amount between the agreed price and the spot-price, the liability to pay arises only on the date as agreed in the derivatives contract. It is unlike any other loan or other liability which is certain and exists in balance sheet date. The Ld. DR further submitted that the assessee entered in forex derivatives forward contracts not for speculation but for hedging its losses. The foreign exchange derivative losses amounting to Rs. 985.57 lacs debited by assessee in its accounts is contingent notional loss and thus the same cannot be allowed as deduction, being contingent liability. 46. The Ld. AR submitted that Marked to Market loss on hedging of foreign exchange on the balance sheet date is an allowable expense u/s. 37. In this regard, the Ld. AR relied upon Hon'ble Apex Court in the case of CIT vs Woodward Governor India Private Limited (312 ITR 254) w....
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....Torrent Power Ltd. [2014] 44 taxmann.com 441 (Gujarat) iii. DCIT vs Voltamp Transformers Ltd (ITA No. 2544/AHD/2014 dt 26-9-2017) iv. Pr. CIT vs. India Gelatine and Chemicals Ltd [20161 66 taxmann.com 356 (Gujarat) 50. We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the assessee company has made suo moto disallowance and the revenue has not disputed the fact that the investment is done from assessee's own fund. The CIT(A) has rightly deleted the disallowance. There is no need to interfere with the findings of the CIT(A). Thus, Ground No. 7 is dismissed. 51. Ground No. 8, 9 and 10 are as follows: 8. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in not going to the merits of the additions/disallowance made by the AO in the assessment order and decided the appeal in favour of assessee on technical ground. 9. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) ought to have upheld the order of the AO. 10. It is, therefore, prayed that the order of the ld. CIT(A) be set aside and that of the A.O. be restored to t....
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.... Pvt. Ltd in ITA No. 2177/AHD/2018 wherein under identical facts relief was allowed to the assessee. 56. We have heard both the parties and perused all the relevant material available on record. The Ld. AR relied upon the decision of Jurisdictional Tribunal in the case of Rajendra Ship Breakers Pvt. Ltd in ITA No. 2177/AHD/2018 wherein under identical facts relief was allowed to the assessee. Since this aspect was based on the Assessment Year 2006-07 as mentioned by the CIT(A) in his order at para 13.3 and as per the finding given hereinabove in para 10 for Ground No. 2 of the said assessment year by us, it will be appropriate to remand back this issue to the file of Assessing Officer/TPO for proper adjudication and verification. Thus, Ground No. 1 is partly allowed for statistical purpose. 57. Ground No. 2 : Erroneous Levy of Interest u/s. 234B and 234C without appreciating the fact that respondent has been assessed under MAT Provisions for the assessment year under consideration 2. On the facts and in the circumstances of the case and in law the ld CIT(A) has erred in allowing the additional ground of chargeability of interest u/s 234B & 234C for non payment of adv....
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....ed by CIT(A) is sustainable in the interest of justice. 59. We have heard both the parties and perused all the relevant material available on record. The Hon'ble Apex Court in case of Rolta Ltd. (supra) has categorically held that the assessee cannot envisage any liability of interest under Section 234B and 234C of the Income Tax Act, 1961 as on the date of filing the return of income. Thus, following the said decision of the Hon'ble Apex Court, the CIT(A) has rightly directed the Assessing Officer not to charge interest under Section 234B on returned income for any delay in depositing self assessment tax. As regards interest under Section 234C of the Act the same is always levied on return income, hence the CIT(A) rightly directed the Assessing Officer to levy such interest from the date of decision of Hon'ble Supreme Courts in case of Rolta Ltd. (supra) to the date of assessment order. Thus, the CIT(A) correctly directed the Assessing Officer to recompute interest under Section 234B and 234C of the Act. There is no need to interfere with the findings of the CIT(A). Hence Ground No. 2 is dismissed. 60. Ground No.3 : Disallowance under section 14A 3. On the facts and....
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....i. DCIT vs Voltamp Transformers Ltd (ITA No. 2544/AHD/2014 dt 26-9-2017) iv. Pr. CIT vs.India Gelatine and Chemicals Ltd [2016] 66 taxmann.com 356 (Gujarat) As the issue has been covered squarely in the assessee's own case, the addition made by the AO is not sustainable and direction would be issued to delete the same in the interest of justice. 62. We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the assessee is having his own funds which increased in the present assessment year. In fact during the present assessment year the investment made by the assessee decreased. The revenue did not dispute that the assessee is having its own huge surplus funds for investment. Therefore, the disallowance u/s 14A made by the Assessing Officer is not justifiable. The CIT(A) was correct in deleting the same. Thus, Ground No. 3 is dismissed. 63. Ground No.4 Disallowance of CENVAT Credit of Rs. 1,08,408/- 4. On the facts and in the circumstances of the case and in law the ld CIT(A) has erred in deleting the addition u/s 145A of Rs 11,08,408/- towards unutilized CENVAT credit without appreciating the fa....
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.... IT(SS)A.No.14/Ahd/2022 for Asst.Year 2010-11 appeal filed by the Revenue is partly allowed for statistical purpose. 68. Assessee's Appeal in ITA No.318/Ahd/2022: A.Y. 2009-10. "1.1 The order passed u/s. 250 on 20.06.2022 for A.Y.2009-10 by CIT(A)-11, Abad upholding the disallowance of depreciation of Rs. 1,13,10,975/-on goodwill is wholly illegal, unlawful and against the principles of natural justice. 1.2 The Ld CIT(A) has grievously erred in law and or on facts in not considering fully and properly the submissions made and evidence produced by the appellant with regard to the impugned disallowance. The Ld. CIT(A) has erred in distinguishing the order of Tribunal for A.Y 2007-08 in case of the appellant on this very issue. 2.1 The Ld. CIT(A) has grievously erred in law and on facts in confirming disallowance of depreciation of Rs. 1,13,10,975/- on goodwill. 2.2 That in the facts and circumstances of the case as well as in law, the Ld. CIT(A) ought not to have upheld the disallowance of depreciation of Rs. 1,13,10,975/- on goodwill. 3.1 The Ld. CIT(A) has erred in law and/or on facts in upholding that goodwill in the present case was....
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....llowance of depreciation of Rs. 84,83,230/- on goodwill upheld by the CIT(A) may kindly be deleted." Ground no.1, 1.2, 2.1, 2.2 and 2.3 : Disallowance of Depreciation on Goodwill in pursuant to explanation to section 32(1), 43(1) and 43(6) to the tune of Rs. 84,83,230/- under normal provisions of the Act. 70. The same is identical to Ground No. 1 of Revenue's appeal being IT(SS)A No. 27/Ahd/2021 for AY 2006-07, hence the finding given in the said appeal hereinabove will be applicable herein. Therefore, the Ground No. 1, 1.2, 2.1, 2.2 and 2.3 are allowed. 71. Assessee's Appeal in ITA No.12/Ahd/2022: A.Y. 2011-12. "1.1 The order passed u/s. 250 on 20.06.2022 for A.Y.2011-12 by CIT(A)-11, Abad upholding the disallowance of depreciation of Rs. 63,62,424/-on goodwill is wholly illegal, unlawful and against the principles of natural justice. 1.2 The Ld. CITIA) has grievously erred in law and or on facts in not considering fully and properly the submissions made and evidence produced by the appellant with regard to the impugned disallowance. The Ld. CITIA) has erred in distinguishing the order of Tribunal for A.Y. 2007-08 in case of the appellant on this very is....