TMI Blog2013 (8) TMI 1147X X X X Extracts X X X X X X X X Extracts X X X X ..... 09 admitting total income of ₹ 84,76,770/-. Subsequently, assessment was reopened after following due process. Assessment was completed under section 143(3) r.w.s. 147 of the Income Tax Act. 3. The first ground of appeal pertaining to disallowance of loss relates to interest income. The case of the assessee is that he has borrowed fund from the bank and the same was deposited in the bank account again. The interest payment made to the bank on the funds borrowed is more than whatever the interest he had received from the fixed deposits and same was shown as loans. The Assessing Officer has not allowed the losses claimed by the assessee. 4. On appeal, the ld. CIT(Appeals) without examining the issue in detail, directed the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for example, he has purchased immovable property at Kodaikanal, Tirunelveli, Velachery, Thandalam, Chengalpet, Thiruppur, Sirukundram, Pudupakkam, Uttandi, Aiyampalayam, Kovalam, etc. He has also sold the land purchased by him at Padur. Hence, the nature of the transaction can at best be treated as business in the real estate. The Assessing Officer treated the profit arising from the sale of Padur land as income from business. 8. The assessee carried the matter in appeal before the ld. CIT(Appeals). 9. It was submitted before the ld. CIT(Appeals) that the assessee along with his wife have purchased the above mentioned land to the extent of 11.32 acres, out of which 1.96 acres were registered in the name of the assessee and the lands ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the income as agricultural income. 11. Aggrieved, the Revenue is in appeal before the Tribunal. 12. At the time of hearing both parties have agreed that the issue may be remitted back to the Assessing Officer to consider all the facts and decide the issue afresh. 13. In this case, the assessee and his wife purchased the land from an agriculturist. According to the assessee, the land sold by the assessee is an agricultural land and exempt from taxation. However, the Assessing Officer has not accepted the contention of the assessee on the ground that the said land is situated in OMR and no agricultural operations are being carried out in that area and also gave a finding that during the assessment year the assessee had purchased va ..... X X X X Extracts X X X X X X X X Extracts X X X X
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