2023 (1) TMI 1206

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....ric 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 and one of the conditions for the issue of l....

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....ty, 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 of being reduced from the capital work-in-progress as contended / treated in the accounts by the appel....

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....ssee 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 (2012) 343 ITR 89 (SC) had directed the A.O. to adopt the netting method. The relevant finding of the Tribunal reads as follow....