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2017 (8) TMI 334 - AT - Income TaxLeasing income from commercial premises - "Income from House Property” OR "Profits & Gains from Business /Profession” - Held that:- Assessee pointed out that assessee has suffered long term capital loss on sale of Preference shares, which was sought to be carried forward. It has been explained that there was no determination by the Assessing Officer on this aspect and when the issue was taken up before the CIT(A), he has also denied the same on a misconception that the loss was on account of sale of equity shares. The Ld. Representative for the assessee pointed out that assessee company would be satisfied if the matter is restored back to the file of Assessing Officer in order to appreciate the correct position and determine the long term capital loss on sale of Preference shares.The Ld. Departmental Representative has not opposed the plea of the assessee to set-aside the issue back to the file of Assessing Officer. In the above background, we restore the issue back to the file of the Assessing Officer who shall revisit the issue on the basis of the submissions of the assessee and decide afresh in accordance with law. Disallowing the interest and other expenses under section 14A - Held that:- In so far as the finding of the CIT(A) that the interest on borrowed funds were utilized towards investment in equity shares are concerned, the same has not been negated before us by the Revenue. Therefore, the same is hereby affirmed. Even otherwise, we find that even with respect to the quantum of disallowance out of other expenses is concerned, we find no infirmity in the order of the CIT(A), which is hereby affirmed. Thus, in so far as Grounds of appeal No.1 to 3 of the Grounds of appeal, the Revenue has failed to produce any evidence in support of its claim, therefore, the same are dismissed. Disallowance of interest expenditure under section 36(1)(iii) - Held that:- No fault can be found in the plea set-up by the assessee, so however, it was essential for the CIT(A) to take into consideration the specified observation of the Assessing Officer to the effect that the assessee had failed to prove the utilization of such funds by the subsidiaries. Even at the time of hearing before us, when this was put across to the parties, the Ld. Representative for the assessee submitted that the assessee would be in a position to demonstrate the utilization of such funds by the subsidiaries for their business purposes and for that purpose the matter may be set-aside to the file of the Assessing Officer. Therefore, under these circumstances, it would be in the fitness of things that the said aspect, being a factual aspect, is appropriately put to verification by the Assessing Officer. The assessee shall submit appropriate evidence in support of its plea that the funds have been utilized by the subsidiaries for the purposes of their business and the Assessing Officer shall consider the same and, thereafter pass an appropriate fresh order
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