2012 (5) TMI 726 - AT - Income Tax

Summary

Issues involved: Assessment of netting of interest income u/s 2004-2005.

Summary:
The appeal was filed by the assessee against the order of the Commissioner of Income Tax (Appeals)-I, Baroda for the assessment year 2004-2005. The Tribunal had earlier partly allowed the appeal. However, the assessee filed a Misc. Application contending for netting of interest income earned from M/s. Krishna Barrels Pvt. Ltd. The Tribunal recalled its earlier order to decide on the alternate plea of netting of interest to the extent of &8377; 35,203 out of the disallowed amount of &8377; 5,41,838. The assessee argued that the interest income of &8377; 35,203 was earned from loans and advances given to "KBPL" and should be allowed for netting. The Tribunal found that the assessee was entitled to netting the income from loans and advances given to "KBPL" of &8377; 35,203 out of the disallowed interest amount of &8377; 5,41,838, as there was no dispute on the basic facts. The Tribunal directed accordingly, granting relief of &8377; 35,203 to the assessee. The appeal was partly allowed as a result.

In conclusion, the assessee's appeal was partly allowed by the Tribunal, granting relief in the form of netting of interest income earned from loans and advances given to "KBPL" to the extent of &8377; 35,203 out of the disallowed interest amount of &8377; 5,41,838 for the assessment year 2004-2005.