TMI Blog2006 (9) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... certainly leads to the conclusion that there may be an enhancement of assessment or a penalty or reduction of the amount of refund. If that be so, as contemplated u/s 251(2) of the Act, the CIT(A), as rightly held by the Tribunal, should not exercise the power conferred u/s 251(2) without giving a reasonable opportunity to the assessee showing against such enhancement or reduction, and to that extent the Tribunal is right in coming to the conclusion that the CIT(A) has committed an error in rendering the finding that it is not clear in the assessment order as to how the expenditure which had been capitalised in the books of account and claimed in the adjustment statement has been allowed by the Assessing Officer. In any event, it is a se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds, but disallowed other claims of the assessee. 3. Aggrieved by the disallowed portion of the assessment order, the asses- see preferred an appeal before the Commissioner of Income-tax (Appeals), who, while partly allowing the appeal and remitting the matter to the Assessing Officer held that it was not clear as to how the expenditure which had been capitalised in the books of account and claimed in the adjustment statement has been allowed by the Assessing Officer and observed that this part of the case also needs to be examined. 4. On further appeal by the assessee to the Tribunal, the Tribunal by order dated October 12, 2005, held that the Commissioner of Income-tax (Appeals) committed an error in law, as the power conferred under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowing powers (a) in an appeal against an order of assessment, he may confirm, reduce, enhance or annul the assessment ; or he may set aside the assessment and refer the case back to the Income-tax Officer for making a fresh assessment in accordance with the directions given by the Appellate Assistant Commissioner or, as the case may be, the Commissioner (Appeals) and after making such further inquiry as may be necessary, and the Income-tax Officer shall thereupon proceed to make such fresh assessment and determine, where necessary, the amount of tax payable on the basis of such fresh assessment ; (b) in an appeal against an order imposing a penalty, he may confirm or cancel such order or vary it so as either to enhance or to red ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g a reasonable opportunity to the assessee showing against such enhancement or reduction, and to that extent the Tribunal is right in coming to the conclusion that the Commissioner of Income-tax (Appeals) has committed an error in rendering the finding that it is not clear in the assessment order as to how the expenditure which had been capitalised in the books of account and claimed in the adjustment statement has been allowed by the Assessing Officer. 8. In any event, it is a settled law vide India Cements Ltd. v. CIT [1966] 60 ITR 52 (SC) that the loan obtained was not an asset or an advantage for the enduring benefit of the business of the assessee. 9. Applying the said principle, we find that interest on debentures and corporate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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