2023 (1) TMI 1206

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....in the business of generation of hydroelectric power. For the assessment year 2014-2015, the return of income was filed on 26.09.2014 declaring loss of Rs.12,23,146. The assessment was selected for scrutiny and notice u/s 142(2) was issued. During the course of assessment proceedings, it was noticed by the Assessing Officer that the assessee had earned interest on fixed deposits with IDBI Bank of Rs.2,39,59,720 and the assessee had set off the same against the interest expenditure incurred for construction etc. and the net amount was capitalized. The A.O. show caused the assessee why the interest should not be treated as `income from other sources'. It was contended that the assessee had taken certain loans from IDBI Bank for its business a....

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....he authorities below in so far as they are against the appellant are opposed to law, equity, weight of evidence, probabilities, facts and circumstances of the case. 2. The learned CIT(A) is not justified in upholding the disallowance of Rs.12,23,146 being the loss claimed under the head "Profits and Gains of business" on the ground that the appellant had consented to the said disallowance before the learned A.O. under the facts and in the circumstances of the appellant's case. 3. The learned CIT(A) is not justified in upholding the assessment of the sum of Rs.2,39,59,720 being the interest income accrued on fixed deposit on the ground that the said interest was liable for assessment under the head "Other Sources" instead o....

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....est receipt with the interest expenditure. The learned AR submitted that if ground No.4 is decided in favour of the assessee following ITAT's order in assessee's own case for assessment years 2012-2013 and 2013-2014 (supra), the other grounds may be left open and need not be adjudicated. 6. The learned Departmental Representative supported the orders of the A.O. and the CIT(A). 7. We have heard rival submissions and perused the material on record. Ground No.4 raised above has been decided by the Tribunal in assessee's own case for assessment years 2012-2013 and 2013-2014 (supra). The Tribunal in the above case, by following the judgment of the Hon'ble Supreme Court in the case of ACG Associates Capsules Pvt. Ltd. v. CIT reported in (2....