2011 (2) TMI 1121

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..... ent arises out of the order dt. 18th Jan., 2010 of learned CIT(A), Jodhpur. The only ground raised by Department reads as under : "On the facts and in the circumstances of the case, the learned CIT(A) has erred in deleting the disallowance of interest expenses of Rs. 4,24,569 made under s. 154 of IT Act ignoring the fact that the interest expenditure allowed against the 'income from other sources .....

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..... 4,26,569 and claimed loss of Rs. 3,36,306 under this head, which is not allowable. The assessee, in its reply enumerated in the order under section 154, pointed out that the loans raised by the assessee in his personal books have been invested in proprietary business and, therefore, the interest paid was for earning business income and, hence, allowable as deduction out of business income. It was .....

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..... t payment. He, accordingly, made addition of Rs. 4,26,569. 3. The learned CIT(A) deleted the addition, inter alia, observing that in view of the decision of Hon'ble Supreme Court in the case of T.S. Balaram, ITO v. Volkart Bros. [1971] 82 ITR 50, section 154 can be invoked only when a mistake apparent on record is obvious and patent and not in respect of something which can be established by a lo .....

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..... "Income from other sources" or as "Income from business". 6. We have heard the rival submissions and have perused the record of the case. The assessee had claimed the interest payment against income from other sources in the statement of total income filed by it along with the return. The AO passed the order under section 143(3) and specifically referred to the returned income as per statement o .....

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..... y assessee per se was not allowable. But, it is a case where after examining all facts only conclusion could be arrived at regarding allowability or otherwise of the expenditure. Further, the assessee's alternative claim of allowing expenditure, in any case, as business expenditure also cannot be ignored because the funds had been invested in assessee's proprietary business. Thus, conclusion eithe .....

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