https://www.taxtmi.com/caselaws?id=307258 The Tribunal remanded the case back to the Assessing Officer for fresh adjudication on the disallowance of interest expenses. The Tribunal directed the AO to reassess the allowance of interest after the assessee provides complete details of the utilization of borrowed funds. The AO will determine the interest income under "other sources" and allow the interest paid to the extent it is used for earning income. If the necessary details are not provided, the AO may disallow the deficit of interest based on established principles. The initiation of penalty proceedings under section 271(1)(c) was not specifically addressed in the judgment. en-us Tue, 28 Dec 2010 00:00:00 +0530 Thu, 30 Mar 2023 17:36:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=307258 The Tribunal remanded the case back to the Assessing Officer for fresh adjudication on the disallowance of interest expenses. The Tribunal directed the AO to reassess the allowance of interest after the assessee provides complete details of the utilization of borrowed funds. The AO will determine the interest income under "other sources" and allow the interest paid to the extent it is used for earning income. If the necessary details are not provided, the AO may disallow the deficit of interest based on established principles. The initiation of penalty proceedings under section 271(1)(c) was not specifically addressed in the judgment. Case-Laws Income Tax Tue, 28 Dec 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=307258