2014 (2) TMI 189

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....granting the deduction of 54,40,440/- being interest waived written back for the AY 2005-06 as the same was claimed as a deduction by the appellant for the AY 2004-05, but the assessing officer failed to allow it?" 2. Admitted facts that led to filing of the present appeal are as under: When appellant had to file returns pertaining to assessment year 2005-2006 on 27.10.2005, completion of assessment proceedings for earlier assessment year 2004-2005 was pending. He declared 54,40,440/- as income while filing return of income because of waiver of interest by the creditor who lent money to the appellant assessee. He was also under the impression that interest expenditure of 54,40,440/- claimed for the assessment year 2004-2005 would be a....

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....st wrong step of the appellant. Later, though he had opportunity to file revised return so far as income for the assessment year 2005-2006 till 31.3.2007, he did not choose to file revised return in spite of intimation of disallowance of interest expenditure for the previous assessment year. This is the second wrong step taken by the appellant assessee. 5. The appellant assessee kept quiet till intimation was sent under Section 143(1) of the Act demanding deficit tax. Assessment by the department would be based on the material or information indicated in the return of income filed by the assessee. Demand of deficit tax is also based on details found in return of income submitted by the assessee on 27.10.2005. So far as the calculation or....