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TMI Blog2016 (7) TMI 138X X X X Extracts X X X X X X X X Extracts X X X X ..... disposed of by this common order for the sake of convenience. 2. The grounds raised in ITA No. 2103/Del/2014 (AY 2007-08) read as under:- 1(i). That on the facts and circumstances of the case, the CIT(A) was not justified in confirming the order of the Assessing Officer regarding closure of the business without appreciating facts and written submissions of the appellant. (ii) That finding about closure. of the business is illegal, arbitrary and without appreciating the facts and legal principles. 2(i) That the claim of expenses were in respect of the existing business and there being no dispute about the genuineness of the claim, orders of the lower authorities in rejecting the claim are without any legal and factual basis. (ii) Tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Notice u/s. 142(1) alongwith detailed questionnaire was issued on 28.4.2009 which was also duly served on the assessee. In response thereto, Assessee's Authorised Representative attended the assessment proceedings from time to time and the case was discussed and written replies were furnished to the AO. Thereafter, the AO completed the assessment u/s. 143(3) of the Act vide his order dated 27.11.2009 and loss allowed to be carried forward at Rs. 2,35,50,357/-. 4. Aggrieved by the aforesaid order of the Assessing Officer dated 27.11.2009, assessee filed an appeal before the Ld. First Appellate Authority, who vide impugned Order dated 22.1.2014 has dismissed the appeal of the Assessee. 5. Aggrieved with the aforesaid finding of the Ld. CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year under reference. I also find from the record that the assessee is engaged in the business of lotteries and the business has never been closed or discontinued, as stated by the Ld. Counsel of the assessee. The firm is still in existence and maintaining regular establishment and infrastructure. The lottery business is being carried out on in terms of agreement with Nagaland and Meghalaya Authorities. However, the business was discontinued by these authorities on the technical reasons and dispute which is still pending in arbitration. I find that the assessee has a regular establishment and incurred various expenses as a part of running business clearly establish that business has neither being closed or discontinued by the assessee. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e against the order of the Ld. CIT(A) dated 27.1.2014 confirming the action of the AO wherein the AO passed the order u/s. 154 of the Act on 7.10.2010. He has rectified a mistake which is according to him apparent from record. The purported mistake is setting off of carry forward business loss of Rs. 2,37,88,905/- with assessed income from other sources of Rs. 2,38,548/-. Consequently, the AO disallowed the set off of Rs. 2,38,548/- from income from other sources. On appeal before the Ld. CIT(A), Ld. CIT(A) dismissed the Appeal of the Assessee stating that interest has been earned on margin money against the issuance of Bank Guarantee and therefore, such interest income is business income and the same is not assessable as income from other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness income' is supported by the decision of the Jurisdictional High Court in the case of CIT vs. Jaypee DSC Ventures Ltd. (2011) 335 ITR 132 (Del.). There are other contrary decisions also available and therefore, the issue becomes debatable with respect to the taxation of such interest income. When the issue is debatable the provisions of Section 154 cannot be invoked. The provisions of Section 154 can be invoked when there is apparent mistake which is glaring and patent. In the present case, we do not find any such mistake and, therefore, the Ld. CIT(A) has erred in upholding the provisions of section 154 invoked by the AO. In the result, we reverse the finding of the Ld. CIT(A) and cancel the order passed u/s. 154 dated 7.10.2010. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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