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2017 (12) TMI 1164 - AT - Income TaxRevision u/s 263 - Held that:- As per the provisions of IT Act, the CIT(A) is not vested with the powers to adjudicate the orders of the CIT. Since it is specific remand to the AO, the AO is bound to follow the direction and the Ld.CIT (A) cannot adjudicate the merits of the directions of the CIT. Since the AO has given effect to the order of the CIT u/s 263 correctly by making addition which was confirmed by the Ld.CIT(A), we do not find any reason to interfere with the order of the Ld.CIT(A), hence, we uphold the order of the Ld.CIT(A) and dismiss the appeal of the assessee on this issue. Addition interest received on which the income is estimated - Held that:- In this case, the AO has not made out a case for making the addition of interest as income from other sources separably. As per the judicial precedents, once the income is estimated no income required to be brought to tax separately. During the appeal hearing, the Ld.AR did not make out case that the impugned interest is business receipt and the Ld.DR also failed to produce any other evidence to establish that there is a case for making the addition of interest income separately. Therefore, we are of the considered opinion the issue needs further verification to hold whether the interest is a separate source of receipt other than from the source of business or not. Therefore we set aside the order of the CIT(A) and remit the matter back to the file of the AO to examine the correctness of assessee’s claim that the interest forms part of business income or not and decide the issue afresh on merits. Assessee’s appeal on this ground is allowed for statistical purposes.
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