TaxTMI 
TaxTMI 
2010 (12) TMI 976
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....ed appellate order of the learned Commissioner of Income-tax (Appeals) is contrary to the relevant facts and the applicable law. 2. That on the facts and in the circumstances of the case, the learned Commissioner of Income-tax (Appeals) erred in confirming the disallowance of Rs. 1,44,57,738 made by the Assessing Officer while computing the taxable income of the appellant for the year. 3. That on the facts and in the circumstances of the case, the learned Commissioner of Income-tax (Appeals) ought to have held that the appellant was entitled to a deduction either under section 36(1)(iii) or section 57(iii) of the Income-tax Act in computing its taxable income, in respect of the amount of Rs. 1,44,57,738 being i....
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....on record. He, however, submits that he has no objection in regard to the matter is restored back to the file of the Assessing Officer for examination afresh after recording a categorical finding whether or not the assessee is engaged in business and considering the claim of deduction in the light of the judgment of the hon'ble Bombay High Court in the case of Srishti Securities (P.) Ltd. (supra). He, however, hastens to add that in the first round of proceedings even though the Assessing Officer had an occasion to examine the impact of section 14A, no specific disallowance was made and that giving fresh life to the assessment at this stage may put the assessee to a disadvantage in case the Assessing Officer is allowed to examine the applic....
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....ing Officer, we are allowing the assessee to improve upon his case. As regards the question of disallowance under section 14A, the learned Departmental representative submitted that this issue is to be determined as per the present legal position and merely because the disallowance was not made in the earlier round of proceedings, the Assessing Officer cannot be deprived of his legitimate tax share. He has prayed that the restriction as sought by the assessee need not be placed while remitting the matter to the file of the Assessing Officer. 6. In a brief rejoinder, learned counsel submits that the restrictions which are being sought to be placed are in accordance with law laid down by the hon'ble jurisdictional High Court in the case of....
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.... substance in the plea made by the assessee and direct the Assessing Officer to decide the matter afresh in the light of our above observations. With these observations, the matter stands restored to the file of the Assessing Officer for fresh adjudication after giving a reasonable opportunity of being heard to the assessee in accordance with law and by way of a speaking order. 8. Before parting, we may make it clear that learned counsel had addressed us at length on several aspects of deductibility of interest payment under section 36(1)(iii) as also under section 57(iii) of the Act. However, since we have decided to remit the matter to the file of the Assessing Officer for readjudication in the light of the decision of the hon'ble juri....