Case Law Details
L & T Finance Limited Vs DCIT (Bombay High Court)
1. By these two appeals filed under Section 260 -A of the Income Tax Act, 1961 (for short “I. T. Act, 1961”), the appellant – assessee takes exception to the common Judgment and Order dated 5th May, 2015, passed by the Income Tax Appellate Tribunal (for short “ITAT”). The ITAT, by the impugned order, upheld the order of the CIT(A) who inter alia held the gain arising to the assessee on account of securitization of lease receivables and credited to the Profit & Loss Account of the assessee was a taxable receipt in the current assessment year. Income Tax Appeal No.256 of 2016 is with reference to A.Y. 2002-03 and Income Tax Appeal No.26 7 of 2016 is with reference to A.Y. 2003-04.
2. In the Memo of Appeal of Income Tax Appeal No.256 of 2016 what is submitted is that the impugned order gives rise to the following substantial questions of law, which read thus:
“(1) Whether on the facts and in the circumstances of the case and in law, the Tribunal was right in holding that the amount of Rs.1.69 Crores credited to the profit and loss account on account of securitization of lease rentals receivable in subsequent years is chargeable to tax in the assessment year 2002-03 ?.
(2) Whether on the facts and in the circumstances of the case and in law, the Tribunal was right in holding that the amount of Rs.1.69 Crores is chargeable to tax merely because the same is credited to the profit and loss account of the Appellant?
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