TMI Blog2009 (7) TMI 632X X X X Extracts X X X X X X X X Extracts X X X X ..... n application before the Settlement Commission. The Settlement Commission determined the income of the assessee at Rs. 79,68,412 for the assessment years 1986-87 to 1996-97. The Settlement Commission granted set off to the assessee of carried forward loss from house property in the computation of long term capital gains for the year 1996-97. It also allowed deduction of interest on borrowals. Held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tlement Commission settling the block assessment of the assessee for the assessment years 1986-87 to 1996-97. A search was made in the residential and business premises of the assessee on February 1, 1996. Pursuant to search, the assessee filed a return and revised return. However, pending assessment under section 158BC of the Income-tax Act, 1961, the assessee filed application before the Settlem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g-term capital gains. It is against this order of the Settlement Commission, the Department has filed this original petition. I have heard standing counsel for the petitioner and Sri P. Balakrishnan, appearing for the respondent-assessee. 3. The counsel appearing for the respondent submitted that the jurisdiction of the High Court is extremely limited and the limitations are contained in the K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of income-tax cases taken by it, it is bound by the statutory provisions and once there is an express bar, the Settlement Commission cannot get over it. In fact, the Settlement Commission itself has computed the profit on sale of long-term capital asset and further deductions from that could be granted only in accordance with the statutory provisions. Since there is express bar against granting of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted as if it is found that the assessee has really incurred so much of the expenditure on borrowals. In this view of the matter, I uphold the order of the Settlement Commission on this issue. The original petition is, therefore, allowed in part directing the Assessing Officer to treat the Settlement Commission's order modified to the extent indicated above, demand tax, interest, etc., thereon. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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