TMI Blog2005 (12) TMI 228X X X X Extracts X X X X X X X X Extracts X X X X ..... l in ITA No. 51/Hyd/2002, dt. 31st May, 2002 for the asst. yr. 1998-99 on the basis of which the learned CIT(A) has given direction, was not accepted by the Department and a RA was filed before the High Coun." 2. We have heard rival submissions. On a careful consideration of the facts and circumstances of the case, we are of the considered opinion that the issue is covered in favour of the assessee and against the Revenue by the decision of Special Bench of the Tribunal in the case of Lalsons Enterprises vs. Dy. CIT (2004) 82 TTJ (Del)(SB) 1048 : (2004) 89 ITD 25 (Del)(SB). 3. The learned Departmental Representative, while agreeing that the order of the CIT(A) is in line with the proposition laid down by the Special Bench of the Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upport of this proposition. His case is that the ground now being raised by the Revenue does not arise out of the order of the first appellate authority and it cannot be admitted by the Tribunal whose jurisdiction, as submitted earlier, is confined to passing of orders only on facts found by the lower authorities. He relied on the order of the Special Bench of the Tribunal in the case of Lalsons Enterprises and submitted that the receipts that are to be excluded from the business profits are those which are included in such profits. He further submitted that in the assessee's own case for the preceding two years, the Tribunal upheld the assessee's contention. He vehemently contended that there is not even a prayer for admission of additiona ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o profit, we do not understand how the gross figure can be taken out. To give an example: ------------------------------------------------ Purchases 50 Sales 100 Interest Paid 500 Interest receipts 500 Profit of business 50 Total 600 600 ------------------------------------------------ In the case illustrated above, no element of interest enters into net profit. If the concept of nexus is brought in, then an amount of Rs. 500 (gross) should be reduced from an amount of Rs. 50 (net profit). This creates an anomalous situation. When no element of interest has entered the figure of "profit of business", the question of removing interest does not arise. There ..... X X X X Extracts X X X X X X X X Extracts X X X X
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