DCIT-3(4), MUMBAI vs. M/S IDBI BANK LTD, MUMBAI

ITA 2937/MUM/2022Status: DisposedITAT Mumbai11 May 2023AY 2017-201844 pages
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What did the Tribunal hold?

The Tribunal held that broken period interest is not a capital outlay and is allowable as a business expenditure, following the Bombay High Court's decision. It also allowed the deletion of disallowance of tax on non-monetary perquisites in computing book profits, relying on its own prior decision.

What were the facts?

The appeals by the revenue and assessee concerned the assessment year 2017-18. The revenue challenged the deletion of disallowances related to broken period interest, expenses under Section 14A, amortization of premium, and interest on perpetual debt instruments. The assessee also raised grounds related to book profits.

What were the issues?

The key issues were the allowability of broken period interest as a business expense and the treatment of tax on non-monetary perquisites for book profit computation.

Which sections of the Income-tax Act were involved?

Section 14A,Section 115JB

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Income Tax Appellate Tribunal, MUMBAI BENCH “C”, MUMBAI

Before: SHRI KULDIP SINGH, HONBLE & SHRI S. RIFAUR RAHMAN, HONBLE

For Appellant: Mr. C. Naresh
For Respondent: Mr. K.C. Selvamani
Pronounced: 11.05.2023

PER S. RIFAUR RAHMAN (AM)

1.

These appeals are filed by revenue and assessee against order of Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [hereinafter in short “Ld.CIT(A)”] dated 19.09.2022 for the A.Y.2017-18. ITA NO.2937/MUM/2022 (A.Y: 2017-18) – REVENUE APPEAL

2.

Revenue

The order continues below.

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