2019 (4) TMI 292

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....o validity of the reassessment proceedings under Section 147 of the Act on merits and the issue relating to availability of deduction under Section 80 HHC on the interest earned by the Assessee on the bank deposits. 2. The relevant portion of the order of Tribunal is quoted below for ready reference. "4. In the present appeal, the question cropped up for our consideration was whether the assessee could raise the question of validity of jurisdiction assumed by the Assessing Officer under Sec.147 in the course of proceedings taken pursuant to the restoration of the appeals to the first appellate authority by the Tribunal. 5. We find that this issue stands covered in favour of the Revenue by the decision of the Hon'ble....

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....st appellate authority by the Tribunal?" 3. The learned counsel for the Assesee urged before us that the question of Validity of reassessment proceeding under Section 147 of the Act, which was raised before CIT (Appeals) after the remand by the learned Tribunal at the first instance vide order dated 25.08.2006 has not been decided by the CIT (Appeals) on the ground that the learned Tribunal has only remanded the issue back to the CIT (Appeals) on the question of availability of deduction under Section 80HHC with respect to interest income earned as to whether the interest receipt is an "Income from Other Sources" or an "Income from Business" and therefore the learned Tribunal ought to have decided the said question of validity of reasses....

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.... said question in clear terms before the authorities below cannot be permitted to raise the said question now as an after-thought. The said contention of the Assesee is liable to be rejected and the same is accordingly rejected. Thus, the question framed for consideration on 27.10.2009 is answered as against the Assesee and in favour of the Revenue. 6. However on merits of claim u/s. 80 HHC since at a later point of time, this Court after taking into consideration the earlier decisions of this Court in the case of M/s. AVM Cine Products Vs.The Deputy Commissioner of Income Tax [Tax Case Appeal Nos.884 & 885 of 2005 dated 22.02.2019] has held that interest on Bank Deposits earned in the ordinary course of business, is taxable as Business ....