Itxa/900/2013 Of Director Of Income Tax (It) - I v. Oman International Bank, S. A. O. G

sas IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL (LOD) NO.1890 OF 2012 Director of Income Tax (IT)-II, Mumbai ..Appellant. V/s. Oman International Bank..Respondent. Mr. Tejveer Singh for the appellant. Mr. P.J. Pardiwala, Senior Advocate with Rajlaxmi Punjabi i/b. M.S. Bondhanwalla for the respondent. CORAM : J.P. DEVADHAR AND M.S. SANKLECHA, JJ. DATED : 26TH FEBRUARY, 2013 P.C. :- 1.In this appeal by the revenue for the assessment year 1997-98, the following questions of law are raised for our consideration:- i) Whether on the facts and circumstances of the case and in law, the Tribunal is correct in holding that the addition has been wrongly made without appreciating the fact that the PE in India has to be treated as separate entity and the interest payable by the said PE is to be taxed in India in the hands of GE as income ? ii)Whether on the facts and circumstances of the case and in law, the Tribunal is correct in holding that the additional is wrongly made without appreciating the fact that the proviso to Section 36(1)(viia) states clearly that deduction of bad debts shall be limited to the amount by which such debt exceeds the balance in the provision account made u/s.36(1)(viia) ?the Tribunal is correct in holding that the additional is wrongly made without appreciating the fact that the proviso to Section 36(1)(viia) states clearly that deduction of bad debts shall be limited to the amount by which such debt exceeds the balance in the provision account made u/s.36(1)(viia) ? iii)Whether on the facts and circumstances of the case and in law, the Tribunal is correct in holding that impugned amount claimed by the asset is not a deduction but it is an expenditure and it is not the case of the revenue that these expenditures are not allowable in the regular course of business of the assessee without appreciating the fact that there are no provisions in the Act which allow change in computation of income by the assessee by reasons of modification of account, otherwise than by filing revised return ?the Tribunal is correct in holding that impugned amount claimed by the asset is not a deduction but it is an expenditure and it is not the case of the revenue that these expenditures are not allowable in the regular course of business of the assessee without appreciating the fact that there are no provisions in the Act which allow change in computation of income by the assessee by reasons of modification of account, otherwise than by filing revised return ? 2.Counsel for the parties state that similar questions raised by the revenue in respect of the same respondent-assessee for the assessment year 1996-97 being Income Tax Appeal (Lod) No.1889 of 2012 have not been entertained by us today i.e. 26[th] February, 2013. In view of the above, for the reasons stated in our above order, we see no reason to entertain the proposed questions of law as proposed. Accordingly, the appeal is dismissed with no order as to costs. (M.S. SANKLECHA, J.) (J.P. DEVADHAR, J.)