1970-VIL-324-KAR-DT
KARNATAKA HIGH COURT
ITA NO. 52 OF 2015
Date: 01.01.1970
THE COMMISSIONER OF INCOME TAX, THE ASSISTANT COMMISSIONER OF INCOME TAX
Vs
M/s CORPORATION BANK
JUDGMENT
1.“Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in deleting the addition representing expenditure relating to earning of exempt income ignoring the provisions of section 14A(1) of the Act r.w. Rule 8D?”
2.“Whether on the facts and in the circumstances of the case, the Tribunal was right in law in deleting the addition representing excess claim of bad debts written off under Section 36(1)(vii) of the Act, exceeding the credit balance of the provision made under section 36 (1)(viia) of the Act when the provisions of this section did not permit such an action?”
3.“Whether on the facts and in the circumstances of the case, the Tribunal was correct in holding that depreciation on valuation of investment portfolio is allowable by treating the investments held by the assessee bank as stock-in-trade once the RBI Master Circular read with CBDT Circular No.665 came into force?”
2. When the matter was taken up today, learned counsel for the parties jointly submitted that the substantial question of law No.2 is covered by the judgment dated 24.01.2020 passed in ITA No.256/2011by a Division Bench of this Court. Accordingly, the aforesaid substantial question of law is answered in favour of the assessee.`
3. Similarly, 3rd substantial question of law is answered by a Bench of this Court in judgment dated16.01.2020 in ITA No.18/2014.
4. Insofar as the substantial question of law No.1 is concerned, from perusal of the order passed by the Assessing Officer, we find that the Assessing Authority while invoking the provisions of Rule 14(A) (1) read with Rule 8(D) of the Income Tax Act has not disclosed any basis for expenditure in relation to exempt income while invoking the aforesaid provision. Therefore, the aforesaid substantial question of law is answered in negative and in favour of the assessee.
Accordingly, the appeal is disposed of.
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