Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (8) TMI 392 - AT - Income TaxValidity of reassessment proceedings framed u/s 143(3) r.w.s. 147 - assessment reopened to dis-allow interest expenses holding that said interest paid on the borrowed funds, utilized for the purpose of obtaining capital assets must be capitalized - CIT(A) deleted dis-allowance on ground that requirement is that of utilization of fund for the purpose of business - Held that:- Entire reassessment is bad in law being based on mere change of opinion as there was no failure on part of assessee in disclosing all material particulars. The AO has not come in position of any new material so as to form an opinion that any income has escaped assessment attributable to failure on part of the assessee in disclosing material facts. As regards merits, it is found that borrowed amount is for the purpose of business within the meaning of sec. 36(i)(iii). There is no dispute that borrowed funds were used in business. Hence, we see no reason to interfere - Decided in favor of assessee.
|