2011 (3) TMI 1765 - HC - Income Tax

Appeal disposed with directions for Tribunal to reconsider case in light of facts

The appeal was disposed of with directions to the Tribunal to reconsider the case in light of the factual position and to address the interest expenditure ... - Issues involved: Remitting the case back to the Tribunal for decision, consideration of interest expenditure deduction u/s 56 of the Act.The appeal was disposed of with directions to the Tribunal to decide the case considering the factual position, noting that the Tribunal had followed a judgment which was later overruled by the Bombay High Court. An additional issue regarding the deduction of interest expenditure from interest income u/s 56 of the Act was raised, leading to the modification of the previous orders to include that the issues raised were covered by a judgment of the Court in a specific case.Regarding the first issue, the Tribunal was directed to reconsider the case in light of the factual position, as it had relied on a judgment that was subsequently overruled by the Bombay High Court. The Court acknowledged the mistake of not addressing the interest expenditure deduction issue initially raised, which was accepted by both the counsel for the respondent and the Revenue. The orders were modified to include that the issues raised were covered by a previous judgment of the Court.For the second issue, it was pointed out that the interest expenditure deduction issue had not been addressed in the initial appeal, although it was discussed in another appeal of the assessee. The mistake was accepted by both parties, leading to the modification of the orders to clarify that the issues raised were covered by a specific judgment of the Court in a related case.