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2017 (10) TMI 1343 - HC - Income TaxPeriod of limitation available with the Assessing Officer for completing the assessment - Whether the Appellate Tribunal is correct in holding that the assessment u/s. 143(3) r.w.s. 254 should be completed within 9 months from the end of the financial year of Tribunal's Remand Order i.e. upto 31/12/2010 disregarding the specific provision u/s. 153(3) of the Act? - Held that:- The quoted portion of the Tribunal's earlier order would make it clear that the Assessing Officer was required to pass a fresh order of assessment. Such assessment of course had to be done bearing in mind the observations made by the Tribunal. Nevertheless, it was an order of assessment which would be passed afresh. The Commissioner and the Tribunal, therefore, committed no error. In somewhat similar situation, this Court in case of Instruments And Control Co. vs. Chief Commissioner of Income-Tax and Others reported in [2012 (7) TMI 694 - GUJARAT HIGH COURT] expressed the same opinion. Disallowance of interest - bank interest is 14% whereas the assessee claimed the interest @22% - Held that:- In any case, the issue is predominantly factual in nature. The assessee had borrowed funds from its sister concerns and paid interest at the rate of 22% which was found to be excessive as compared to the prevailing bank rates. The Commissioner as well as the Tribunal on an analysis of facts on record come to the conclusion that disallowance of interest expenditure was not justified.
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