https://www.taxtmi.com/caselaws?id=751555 The ITAT Guwahati quashed revisionary proceedings u/s 263 initiated by CIT against an assessment order. The CIT contended that the AO failed to examine interest expenditure claimed against third-party interest income. However, the ITAT found that the AO had conducted detailed enquiry through specific questions in notice u/s 142(1) regarding investments/loans and interest payments. The AO properly examined the real estate assessee's practice of utilizing idle borrowed funds for short-term lending as commercial expediency, allowing interest expenditure claims after the assessee set off such expenditure against interest income earned. The ITAT held the assessment order was neither erroneous nor prejudicial to revenue interests, deciding in favor of the assessee. en-us Mon, 11 Mar 2024 00:00:00 +0530 Fri, 19 Apr 2024 13:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=751555 The ITAT Guwahati quashed revisionary proceedings u/s 263 initiated by CIT against an assessment order. The CIT contended that the AO failed to examine interest expenditure claimed against third-party interest income. However, the ITAT found that the AO had conducted detailed enquiry through specific questions in notice u/s 142(1) regarding investments/loans and interest payments. The AO properly examined the real estate assessee's practice of utilizing idle borrowed funds for short-term lending as commercial expediency, allowing interest expenditure claims after the assessee set off such expenditure against interest income earned. The ITAT held the assessment order was neither erroneous nor prejudicial to revenue interests, deciding in favor of the assessee. Case-Laws Income Tax Mon, 11 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=751555