9911796707
TMI Blog2014 (3) TMI 846X X X X Extracts X X X X X X X X Extracts X X X X ..... o allow netting of interest and grant set off of interest earned towards interest paid. 2. This Court is informed that the Assessing Officer, in view of the order dated 26-12-2006, passed the order dated 19-11-2007 granting benefit of netting of interest to the extent of Rs. 19,52,040 for the assessment year 1992-93 and Rs. 14,40,945/- for the assessment year 1993-94. There does not appear to be any dispute that the Commissioner of Income Tax could not invoke the powers under section 263 of the Income-tax Act 1960 (for short "IT Act") to examine legality of the order dated 19-1-2007 in view of pendency of these appeals. In other words, the order passed by the Assessing Officer dated 19-11-2007 was subject to the result of the present appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and that the assessee had borrowed the amount from the bank on interest. He submitted that this ground of challenge was not raised by the assessee before the Assessing Officer. He submitted that it was wrong on the part of the Tribunal to assume that the case, as reflected in paragraph 5.1 of the impugned order, was true and correct. In other words, he submitted the assessee did not place any material on record to show that the fixed deposits were made due to compulsion for procuring import licence and letter of credit and for that purpose the assessee had borrowed the said amount from the bank on interest. 5. On the other hand, Mr. Shankar, learned counsel for the assessee submitted that the revenue did not raise any dispute in respect o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nterest earned towards interest paid, has passed an order giving effect to the order passed by the Tribunal dated 26-12-2006. In other words, it was submitted on behalf of assessee that the Assessing Officer while dealing with the issue whether the assessee is entitled for netting of interest by setting off of interest earned towards interest paid, examined the case of the assessee as to whether he is entitled for netting of interest and if yes, to what extent. In this view of the matter, learned counsel for the revenue submitted that the Commissioner may be allowed to exercise his powers under section 263 of the IT Act to examine the order passed by the Assessing Officer dated 19-11-2007 and to find out whether allowing of netting of inter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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