2011 (2) TMI 1121

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....Mehrotra,- This appeal by the Department arises out of the order dt. 18th Jan., 2010 of learned CIT(A), Jodhpur. The only ground raised by Department reads as under : "On the facts and in the circumstances of the case, the learned CIT(A) has erred in deleting the disallowance of interest expenses of Rs. 4,24,569 made under s. 154 of IT Act ignoring the fact that the interest expenditure allo....

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....deduction towards payment of interest of Rs. 4,26,569 and claimed loss of Rs. 3,36,306 under this head, which is not allowable. The assessee, in its reply enumerated in the order under section 154, pointed out that the loans raised by the assessee in his personal books have been invested in proprietary business and, therefore, the interest paid was for earning business income and, hence, allowable....

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....ssessee himself has not claimed this interest payment. He, accordingly, made addition of Rs. 4,26,569. 3. The learned CIT(A) deleted the addition, inter alia, observing that in view of the decision of Hon'ble Supreme Court in the case of T.S. Balaram, ITO v. Volkart Bros. [1971] 82 ITR 50, section 154 can be invoked only when a mistake apparent on record is obvious and patent and not in respect....

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....he assessee's income was assessable under the head "Income from other sources" or as "Income from business". 6. We have heard the rival submissions and have perused the record of the case. The assessee had claimed the interest payment against income from other sources in the statement of total income filed by it along with the return. The AO passed the order under section 143(3) and specificall....