TaxTMI 
TaxTMI 
2013 (12) TMI 64
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.... the below mentioned grounds are independent and without prejudice to one another. 1.a) The Commissioner of Income Tax (Appeals) ( hereinafter referred to as "CIT(A)" ) erred in confirming the addition of Rs. 48, 72, 284/- being the estimated interest on the amount paid for the Rights assigned by the Bank to the Appellant in a pending suit. b)The CIT (A) erred in confirming the interest at the rate of 18%. 2.a) The CIT(A) erred in not considering the said Interest amount of Rs.48, 72, 284/- as Business Income. b)The CIT (A) erred in not allowing the set off of brought forward business Loss. The Appellant craves leave to add to alter, amend, modify, substitute, delete and/or rescind all or any of the above Grounds of Appeal be....
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....rming disallowances of Rs. 15, 413/- u/s.14A of the Act. 2.a) The CIT(A) erred in confirming the addition of Rs. 57, 49, 246/- being the estimated interest on the amount paid for the Rights assigned by the Bank to the Appellant in a pending suit. b)The CIT(A) erred in confirming the interest at the rate of 18%. 3.a) The CIT(A) erred in not considering the said Interest amount of Rs.57, 49, 246/- as Business Income. b)The CIT(A) erred in not allowing the set off of brought forward business loss. The Appellant craves leave to add to alter, amend, modify, substitute, delete and/or rescind all or any of the above Grounds of Appeal before or during the hearing of the Appeal. 2.During the assessment proceedings, AO found that asses....
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....at which bankers were charging i.e.@18%. Accordingly, interest @ 18% on the accumulated a sum of Rs.2.70 Crores was brought to tax under the head Income from Other Sources. As a result, an addition of Rs.48, 72, 284/- was made to the total income of the assessee. 2.Assessee preferred an appeal before the First Appellate Authority (FAA).After considering the submission of the assessee, FAA held that similar issue was agitated by the assessee for the AY 2005-06, that his predecessor, vide his order dated 19.02.2010, had upheld the action of the AO in taxing the interest income for that year, that facts of the cases for both the years were same. Finally, he confirmed the action of the AO. FAA, however, accepted the alternative claim made by....
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....ication u/s.154 has already been moved by the assessee before the AO on 8th, Sept, 2010 seeking rectification of the said mistakes. A copy of the said application is placed at page Nos. 1 to 4 of the assessec's paper book wherein following mistakes have been pointed out by the assessee: X X X X As pointed out by the learned counsel for the assessee, the above mistakes committed by the AO while passing the assessment order were also brought to the notice of the learned CIT(Appeals) in the written submissions flied during the course of appellate proceedings. A perusal of the impugned order of the learned CIT(Appeals) passed for assessment year 2005-06, however, shows that he had not taken cognizance of the same.As submitted by the learn....
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....greed that they had no objection if the matter was sent back to the authorities of the department. We find that FAA had followed the order of his predecessors for the earlier years and the orders for the earlier years have been set aside by the Tribunal. Therefore, we are of the opinion that in the interest of justice, matter should be restored back to the file of the FAA for fresh adjudication. He is directed to afford a reasonable opportunity of hearing to the assessee and decide the issue after considering the above order of the Tribunal i.e.order dated 30.06.2011.Ground no.1 is decided in favour of the assessee, in part. 5. Next ground of appeal is about not considering the interest amount of Rs. 48.72 lacs as business income and not....
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....sides agreed with the issue raised by the AO were consequential and incidental to the main issue involved in the case under consideration i.e.addition made to the total income of the assessee on account of interest income stated to be accrued to the assessee. They agreed that matter should be restored back to the file of the FAA, as the main issue is being restored to the file of the FAA. Accordingly, all the issues raised by the AO are restored to the file of the FAA for deciding them afresh depending upon the ultimate decision of the main issue. Grounds of appeal filed by the AO are allowed, in part. ITA No.5864/Mum/2011-AY-2008-09 First ground of appeal filed by the assessee-company is about disallowance of Rs. 15, 413/- u/s. 14A o....