2014 (12) TMI 551

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..... antial question of law. Netting off interest received u/s 244A - Interest on refund of taxes paid received by assessee – Held that:- The Assessee sought to set off the interest paid against the interest received and offered the net interest received to tax - in the case of the Assessee simply because the exercise carried out by it does not result in loss of revenue and there could not be any prohibition for the same, allowed it - assessee claimed that this was business expenditure and this should have been allowed - the Tribunal in permitting this exercise not violated any of the provisions of the Income Tax Act, 1961 - the Tribunal has followed the similar exercise in the case of very Assessee on the prior occasion as well – thus, as su .....

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..... road had not been provided throughout, then, the remand cannot be directed to rectify the defects or to get over the lacunas in the proceedings initiated by the Assessing Officer. Precisely that has been done in the present case and the Tribunal's refusal to remand the proceedings, therefore, does not raise a substantial question of law. 3. Even with regard to the question No.2 we do not find that it is a substantial question of law. The Tribunal found that the Assessee Bank received interest on refund of taxes paid. It also paid interest on the taxes which were payable. The Assessee sought to set off the interest paid against the interest received and offered the net interest received to tax. We do not see that such findings of the .....

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..... ated any of the provisions of the Income Tax Act, 1961. It was a peculiar situation between the Assessee and the Department. The Tribunal has followed the similar exercise in the case of very Assessee on the prior occasion as well. In such circumstances we are of the opinion that the second question also does not raise any substantial question of law. 6. As regard the third question, the order passed by the Tribunal and treating the securities as stock in trade instead of investment follows the exercise carried out for prior assessment years. In that regard the Tribunal in the order under challenge and particularly in paragraphs 47 and 49 referred to an order passed in the case of the Assessee for the Assessment Years 1990-1991 and 1991- .....

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