1.  CIT & JDIT Vs. M/s SHETRON LIMITED, ITA No.79/2006, Dated: 22nd November 2010, HIGH COURT OF KARNATAKA

Whether when rectification order u/ 154 is passed, interest is to be computed only up to the date of regular assessment.

The assessee was not expected to guess, imagine or presume such an alteration in the years to come which is almost seven years later than the return of income filed by the assessee. Therefore the Tribunal was justified in saying that as on the date of return of income filed on 29.12.1992, there was neither delayed payment of tax nor short fall of tax payable as income tax. Therefore, the tax payable by him on the return income as on 29.12.1992 was paid on time. Therefore, question of levy of interest would not arise in view of compliance of sub-section (4) of section 34-A.

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2.  M/s PCBL INDUSTRIAL LTD Vs. COMMISSIONER OF INCOME TAX, ITA No.428 of 2004, Dated: 16th June 2011, HIGH COURT AT CALCUTTA

Whether when the principal business of the assessee is to grant loans and advances, the loss suffered by the assessee is not covered under explanation to section 73 as it is covered under the exception to the said explanation.

In respect of the assessment of the appellant in respect of preceding years, the Tribunal held that the principal business of the appellant was granting of loan as would appear from the profit and loss account produced by the appellant. The Tribunal in those matters specifically held that the principal business of the appellant being grant of loans, the appellant comes within the exceptions to the Explanation under Section 73 of the Act and thus, it was a fit case where the AO should be directed to allow the set off loss incurred in the purchase and sale of shares treating the same as business loss. While passing such orders, the Tribunal also took into consideration the balance sheet of the appellant for the impugned Assessment Year. These orders of Tribunal attained finality as either the appeal preferred against such order in this High Court has been dismissed or the application for condonation of delay in preferring such appeal has been dismissed by this Court. The appeal is, thus, allowed with a direction upon the Assessing Officer to treat the assessee as coming within the exception to the Explanation added to Section 73 of the Act.

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