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2016 (6) TMI 88 - AT - Income TaxSet off interest income with expenditure - non commencement of business - Held that:- Assessing Officer relied on Supreme Court decision of Tuticorin Alkali Chemicals and Fertiliser Limited (1997 (7) TMI 4 - SUPREME Court) were it was held that interest on bank deposits received before commencement of operations of the business should be offered separately as income from other sources. The assessee has acquired the property and also invested in bank deposits further yet to commence its business operations and freehold land was disclosed in schedule of fixed assets as at 31.03.2005 and the assessee incurred general and administrative expenses debited to profit and loss account as the pre-operative expenditure and setoff with interest income cannot be considered. Considering the provisions, financial statements, judicial decisions, written submissions and material papers filed, the action of set off interest income with expenditure is not permitted in the circumstances were assessee has not set up the business or commenced the business and also not submitted commencement of business certificate issued by Registrar of Companies under Companies Act, 1956. We are of the opinion that the ld. Commissioner of Income Tax (Appeals) has elaborately dealt on the disputed issue in confirming the order of Assessing Officer and we are not inclined to interfere with the order of Commissioner of Income Tax (Appeals) and uphold the same and dismiss the grounds of appeal. - Decided against assessee.
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