TMI Blog1997 (11) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... s Pvt. Ltd. Such payment was held to be capital expenditure and not incurred for the purposes of assessee's own business. For the reasons, given in the aforesaid assessment order for 1981-82, the AO disallowed the claim of the assessee for interest of Rs. 36,000 in each of the 3 assessment years under consideration. 3. The assessee moved an application under s. 154 for rectification of the said mistake by relying on the order of the Tribunal for asst. yr. 1981-82 whereby the disallowance of interest of Rs. 6,000 was deleted. The AO, however, observed that "since the decision of the learned Tribunal is in respect of asst. yr. 1981-82 only, it is not applicable to subsequent years automatically. Hence, there is no mistake apparent from reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , confirmed the orders of the AO. 5. The learned counsel for the assessee invited our attention to the order of the Tribunal dt. 16th Jan., 1990 in ITA No. 1013/Del/1987 in the case of the assessee for asst. yr. 1981-82, wherein the Tribunal noted that the assessee had paid an amount of Rs. 2 lakhs to acquire 67 per cent shareholding of the other company. The Tribunal also noted that according to the IAC the assessee had diverted its funds to the extent of Rs. 2 lakhs on which it had paid interest to the banks. The Tribunal also noted that the IAC had also observed that interest was related to non-commercial activity of the assessee-company and, therefore, it was not allowed as deduction. It was argued before the Tribunal that the loans r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on the basis of the order of the Tribunal. In view of the foregoing, the learned counsel urged that the assessee deserved relief in the light of the aforesaid order of the Tribunal whereby it was clearly held that no nexus had been established by the lower authorities with reference to the loans raised from the bank and the amount of Rs. 2 lakhs paid by the assessee. He again emphasised that the decision of the Tribunal was sufficient ground for allowing relief to the assessee under s. 154. 6. The learned Departmental Representative relied heavily on the orders of the first appellate authority and submitted that there was no mistake apparent from record and that the assessee should have filed appeals, in case it was aggrieved. 7. We h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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