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2015 (4) TMI 436 - AT - Income TaxRevision u/s 263 - unaccounted interest payments - Held that:- In this present case, the Assessing Officer completed assessment u/s.143(3) on 30.11.2011 which means that the Assessing Officer applied his mind and came to the conclusion that the assessee had properly accounted interest payments in his books of accounts. After he came to the conclusion that the whole expenditure incurred by the assessee towards interest payment of D48,39,309/-, he allowed the same as business expenditure. For this conclusion reached by the Assessing Officer, the Commissioner of Income Tax cannot find fault and he cannot impose his view on the Assessing Officer. The Assessing Officer has taken one possible view. The view taken by the Assessing Officer cannot be considered as erroneous if the income from interest on ‘fixed deposit’ is considered as income from other sources, than the interest incurred by the assessee on borrowings used for making deposits is to be allowed as expenditure. Further, if there is any loss under the head “Income from other sources” it is to be set off against income from any other head of Income as per provisions of section 71 of the Act. Then also, there is no revenue loss to the department. From this point of view, the order passed by the Assessing Officer cannot be prejudice to the interests of Revenue. Thus Commissioner of Income Tax is not justified in exercising his jurisdiction u/s. 263 of the Act and the order of the Commissioner of Income Tax passed u/s. 263 is quashed. - Decided in favour of assessee.
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