The Commissioner Of Income Tax-5 v. M/S. Jet Airways (India) Ltd

ASN IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 354 OF 2011 The Commissioner of Income Tax-5.v.M/s. Jet Airways (India) Ltd. ..Appellant. ..Respondent. Mr. Suresh Kumar for the Appellant.Mr. P.J. Pardiwala, Sr. Advocate with Mr. Atul K. Jasani for the Respondent. CORAM : J.P. DEVADHAR AND M.S. SANKLECHA, JJ. DATE : 23RD OCTOBER, 2012 PC: Following questions of law are raised by the revenue in this appeal. a)Whether on the facts and circumstances of the case and in law the ITAT is right in deleting the addition made on account of proportionate aircraft redelivery charges of Rs.5,36,84,354/-? b)Whether on the facts and circumstances of the case and in law the ITAT is justified in deleting the addition made of Rs.16,97,60,354/- in respect of heavy maintenance expenses? c)Whether on the facts and in the circumstances of the case and in law, the order of the ITAT is justified in deleting the addition made by the Assessing Officer on account of depreciation of Rs.6,49,90,41,606/- on aircraft taken on hire purchase? d)Whether on the facts and in the circumstances of the case and in law the order of the ITAT is justified in deleting the addition made by the Assessing officer on account of repairs to furniture and fixture of Rs.67,16,985/-? e)Whether on the facts and in the circumstances of the case and in law, the order of the ITAT is justified in directing the Assessing Officer to treat interest income on fixed deposit as profit from business and profession rather than as income from other sources as held by Assessing officer? g)Whether on the facts and in the circumstances of the case and in law, the order of the ITAT is justified in deleting the addition made by the Assessing officer on account of treating the provision for obsolescence of as contingent liability while computing profit u/s. 115JB? h)Whether on the facts and in the circumstances of the case and in law the order of the ITAT is justified in deleting the addition made by the Assessing Officer on account of provision for doubtful debts while computing book profit u/s. 115JB? i)Whether on the facts and in the circumstances of the case and in law, the order of the ITAT is justified in deleting the addition made by the Assessing officer on account of provision for gratuity while computing book profit u/s. 115JB? 2)The assessment year involved is 2002-03. Counsel for the parties state that similar questions raised by the revenue in the assessee's own case being Income Tax Appeal No.351 of 2011 have been rejected by an order dated 23/7/2012 except question (h) therein which is remanded to the ITAT for fresh decision on merits and in accordance with law. 3)Accordingly, all the questions raised by the revenue except (h) are rejected and as far as question (h) is concerned the issue is restored to the file of the ITAT for fresh decision on merits and in accordance with law. 4)The appeal is disposed of in the above terms with no order as to costs. (M.S.SANKELCHA, J.) (J.P. DEVADHAR, J.)