TMI Blog2017 (5) TMI 907X X X X Extracts X X X X X X X X Extracts X X X X ..... same order whereas, with regard to interest paid to the creditors, there is a specific direction to disallow proportionate interest which is attributable to the acquisition of capital assets. In other words, the Assessing Officer’s duty ends the moment analysis is made with regard to attribution of interest as to whether it is for acquisition of capital asset or a revenue expenditure. While giving effect to the order, the Assessing Officer however, did not consider the issue as to whether it was capital or revenue expenditure. Since the specific direction of the ld. Commissioner was not followed by the Assessing Officer, the order of the ld. CIT(A) as well as Assessing Officer deserves to be set aside on this limited issue with a direct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on to revise the same on the lines discussed hereinabove before the stipulated date after according a reasonable opportunity of being heard to the assessee. 4. I am concerned herein with the claim of deduction of ₹ 52,28,927/- referable to interest paid to loan creditors; according to the assessee firm, the loans were taken for running of the business and capitalised the interest paid to the creditors before commencement of the business 5. On perusal of the profit loss account, ld. Commissioner called upon the assessee to furnish the details in this regard. Since no such details were furnished, the matter was set aside with a direction to obtain details and to examine the matter afresh and disallow proportionate interest wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- and disallowed the same under section 40(a)(ia) of the Act. 7. Aggrieved, assessee contended before the ld. CIT(A) that the Assessing Officer erred in invoking the provisions of section 40(a)(ia) of the Act during the set aside proceedings since the direction of the ld.Commissioner was merely to consider as to whether the expenditure is revenue in nature and thus, the Assessing Officer could not travel beyond the scope of the direction given by the Revisional Authority. 8. The ld. CIT(A) observed that the assessment was set aside under section 263 of the Act on the ground that the Assessing Officer failed to make certain enquiries in regard to various matters, including applicability of TDS provisions with regard to interest paymen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the record. 13. Ground Nos. 1 to 5 are general in nature and therefore, need not require independent consideration. 14. Ground No.4 is with regard to Form No. 15G from the creditors. In absence of any evidence placed on record, ground No. 4 is rejected. 15. Vide ground Nos. 2 3, the assessee contends that the Assessing Officer travelled beyond the scope of directions issued by the ld.Commissioner under section 263 of the Act. I have carefully analysed the particulars and the direction given by the ld. Commissioner. Since the assessee did not furnish any details with regard to interest paid to the creditors, the Assessing Officer was directed to obtain the details and to examine afresh at the time of giving effect to this order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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