TaxTMI 
TaxTMI 
2002 (10) TMI 20
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....s derived by the appellant for the assessment year 1993-94 cannot be set off against the carried forward business losses of the earlier years. The assessment year concerned is 1993-94, the relevant previous year ending on March 31, 1993. In the return filed for the assessment year 1993-94, the appellant sought to adjust/deduct the carried forward business loss of the earlier years as well as of the current year. The assessing authority originally accepted the same in the intimation issued under section 143(1)(a). Later, the assessing authority invoked the provisions of section 154 of the Income-tax Act, 1961, and sought to rectify the mistake by withdrawing the set off allowed. As per the revised statement of income filed by the assessee-b....
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....s losses brought forward against the income computed for the year 1993-94. The Department took up the matter in appeal before the Tribunal. The Tribunal also considered the legal principles regarding the set off of carried forward business loss from the interest income of the current year and summarised the legal position thus: "The basic question is regarding the nature of the investment itself. In Bihar State Co-operative Bank Ltd. v. CIT [1960] 39 ITR 114, the Supreme Court has held that the income earned by the assessee in the form of interest is also income from the business of the assessee-bank. Banks do usually earn interest as their business income on loans and advances made by them. As far as the investments are concerned, the inc....
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.... of the appellant since the first appellate authority had decided the matter only on the legal principles and the Department has also canvassed only the legal principles in the appeal before the Tribunal. We have also heard Shri P.K.R. Menon, learned senior standing counsel (taxes), appearing for the respondent. After considering the rival submissions, we are of the view that since the Tribunal has ascertained the legal principles governing the issue of set off of carried forward business losses of the earlier years against the interest income of the current year and since neither the Assessing Officer nor the first appellate authority had gone into the factual details regarding the claim made, the appropriate course for the Tribunal was t....
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....ppeared for the Revenue. There was no appearance on behalf of the assessee. Instead, an adjournment petition has been placed before us. The case was last time heard on February 26, 2002. At the time of hearing the assessee-bank was required to furnish details of the pattern of investments made by the assessee in interest-bearing securities. Learned counsel appearing for the assessee-bank sought time and the matter was adjourned for April 19, 2002. On April 19, 2002, the authorised representative of the assessee required for more time, as according to him, the details are still being compiled. 6. We are not impressed by the adjournment application put in by the assessee's representative. We have already given reasonable time to the assessee....