TaxTMI 
TaxTMI 
2021 (9) TMI 1166
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....t appeal before us due to the situation arisen out of the Covid-19 pandemic. They have relied upon the order passed by the Hon'ble Apex Court in Writ Petition (Civil) No. 3 of 2020 regarding the extension of limitation. Considering this aspect we condone the delay. 3. The Ld. PCIT is of the opinion that the order passed under Section 143(3) r.w.s. 147 of the Act dated 21.12.2017 was made without examining the provision of Section 57 of the Act in correct perspective and non-examination/verification of the aforesaid issues appropriately by the Ld. AO has made the order under Section 143(3) r.w.s. 147 of the Act erroneous in so far as prejudicial to the interest of revenue within the meaning of Section 263 of the Act. 4. The brief f....
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....enue within the meaning of Section 263 of the Act. 5. We have heard the rival submissions made by the respective parties and we have also perused the relevant materials available on record. 6. It appears from the record that the original assessment order dated 13.03.2014, which is wrongly mentioned as 13.03.2015 passed under Section 143(3) of the Act has considered the issue under Section 57 of the Act. The relevant portion of the same is reproduced hereinbelow:- "5. Disallowance of deduction under section 57: 5.1 The assesses has shown income from other sources at Rs. 13,76,009/- and has claimed deduction of Rs. 15,00,000/- u/s. 57 and thereby loss under the head other sources was shown as Rs. 1,23,991/- and the sam....
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.... Rs. 50,03,217/-, whereas I have claimed interest expense of Rs. 1500000/- only as deduction u/s. 57 of the Act against the interest income of Rs. 1376009/- on ad hoc basis, in view of the facts that part of interest expenses incurred for loans utilized for investment purpose and is not claimed as deduction u/s. 57 of the Act." 5.4 The following conditions should be satisfied for claiming deduction u/s.57; a. the expenditure should be incurred solely for earning such income i.e. to such deduction can be claimed only against the income taxable under the head of other sources b. it should not be in the nature of capital expenditure. c. it should not be in the nature of personal expense. d. it shoul....
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....ture and does not include any personal expenses incurred by the assessee " 5.6 The assessee has failed to prove any nexus between the sources of funds and their utilization of funds. Accordingly deduction claimed under section 57 is limited to Rs. 13,76,009/- and the excess deduction of Rs. 1,23,991/- (being Rs. 15,00,000 - Rs. 13,76,009) is disallowed and added to the total income of the assessee. Penalty proceedings are initiated for concealment of income and furnishing of inaccurate particulars of income. (Disallowance u/s. 57 of Rs. 1,23,991/-)" 7. The Ld. Advocate appearing for the assessee joints issue on this aspect that once the issue has been examined in the order passed under Section 143(3) in the order passed....
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....stance on such submissions made by the Ld. AR. On this issue he has relied upon the order passed by the Hon'ble Delhi ITAT-Delhi Bench, in the matter of Jindal Steel and Powers Ltd. vs. PCIT (in ITA No. 4607/Del/2019) which has been further considered by us. The relevant portion of the judgment is as follows:- "19. As in the present case before us, issues subject to revision were pertaining to original assessment and not the reopened assessment; the limitation should also start from the original assessment. In this case as original assessment order u/s. 143(3) of the act was passed on 16.01.2014, the revision thereof could have been taken up to 31.3.2016. Impugned order u/s. 263 of the act was passed on 26/2/2019, therefore it ....