2012 (12) TMI 754

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....nation petition has been filed by the assessee. Reasons shown being satisfactory, delay is condoned and appeals are admitted. 3. Grounds taken for the years are common and read as under:- 1. The order of the Commissioner of Income Tax(Appeals) dismissing the Appellant's appeal as infructuous on the ground that the assessment order appealed against has been set aside de nova by the Admin Commissioner of Income Tax in exercise of his power under Section.263 of the Income Tax Act is erroneous against the provisions of law and contrary to the facts and circumstances of the case. 2. The Commissioner of Income Tax(Appeals) should have found that in the light of the specific issues raised by the Commissioner of Income Tax while issuing th....

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....ng to the assessments. Appeals of the assessee against original assessment under Section.143(3) of the Act were dismissed by the Commissioner of Income Tax(Appeals) on 24.02.2011, since according to him, Commissioner of Income Tax, Tiruchirappalli had on 15.02.2011 set aside the impugned assessment orders.   5. Now before us the Authorised Representative of the assessee submitted that the issues on which proceedings under Section.263 of the Act were initiated and issues on which assessee was in appeal against the original assessment orders under Section.143(3) of the Act were different. According to him, Commissioner of Income Tax(Appeals) erred in not adjudicating on the grounds raised by the assessee before him despite the fact th....

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....ments made in M/s.Jennay Hotels 65,69,192.00 Addition of notional interest on advances made to outsiders 88,57,602.00 Disallowance of forward contract expenses 10,37,52,195.00 6.3. As against the above, Commissioner of Income Tax had set aside the assessment for A.Y. 2006-07 for consideration of the following:- 1. Interest claimed on loan borrowed for investment in the shares of M/s.Jenny Hotels (P) Ltd is not allowable as the same was not paid for business purposes. 2. Assessee invested in shares and debentures of M/s.Jenny Hotels (P) Ltd. The benefit of Rs. 50 lakhs arising out of the same ought to be taxed under Section.28(iv) being benefit arising from business. 3. Share application money received from M.Rajas....