1981 (4) TMI 167 - AT - Income Tax

Summary

The ITAT Madras-C dismissed the Departmental Appeal regarding the reopening of assessment for asst. yr. 1974-75 under section 147(b) of the IT Act, 1961. The AAC found no jurisdiction for the ITO to reopen the assessment based on the treatment of interest on borrowed capital as cost of acquisition of the capital asset. The ITAT upheld the AAC's decision, stating that the ITO had accepted the assessee's computation and applied his mind, making the reassessment unnecessary. The departmental appeal was dismissed.