TMI Blog2023 (9) TMI 551X X X X Extracts X X X X X X X X Extracts X X X X ..... view that the interest earned by the appellant, through lending the deposited amounts to its partners, could not be treated as the business income of the appellant but had rather to be assessed under the head of income from other sources and consequently no expenses could be set off against the said income earned by the appellant. However, on the Principal Commissioner deciding to remand the matter to the assessing authority for verification of the causal link between the expenses incurred by the appellant and the income earned by it by way of interest, he ought not to have rendered a finding that the appellant was not entitled to claim set off of the expenses against the said income. The effect of Annexure E order of the Principal Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... N NAMBIAR AND HONOURABLE MR. JUSTICE MOHAMMED NIAS C.P. For the Appellant: By Advs. Abraham Joseph Markos, Sri. Isaac Thomas, Sri. Alexander Joseph Markos, Sri. Sharad Joseph Kodanthara, Sri. V. Abraham Markos, Sri. Aibel Mathew Siby For the Respondent: By Adv Sri. Christopher Abraham, SC JUDGMENT DR. A.K. JAYASANKARAN NAMBIAR, J. This I.T Appeal arises out of an order dated 27.10.2022 of the Income Tax Appellate Tribunal, Cochin Bench in ITA No. 257/Coch/2020, pertaining to the assessment year 2015-2016. For the previous year pertaining to the said assessment year, the appellant herein had filed a loss return. By Annexure A assessment order, however, while the interest income of the appellant was accepted, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me Tax Act. 1) Whether on the facts and in the circumstances of the case the Appellate Tribunal is right in holding that the Commissioner was justified in invoking the revisionary jurisdiction under Section 263 of the Income Tax Act? 2) Whether on the facts and in the circumstances of the case and in the light of the assessment proceedings there was any evidence or material before Appellate Tribunal to justify its finding that the Assessing Officer has not made any enquiry with respect to the issue in question and therefore the Commissioner was justified in invoking the jurisdiction under Section 263 of the lT Act 3) Whether on the facts and in the circumstances of the case and in view of the pendency of the Appeal against A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d of income from other sources and consequently no expenses could be set off against the said income earned by the appellant. However, on the Principal Commissioner deciding to remand the matter to the assessing authority for verification of the causal link between the expenses incurred by the appellant and the income earned by it by way of interest, he ought not to have rendered a finding that the appellant was not entitled to claim set off of the expenses against the said income. The effect of Annexure E order of the Principal Commissioner is to effectively preclude the assessing authority from enquiring into whether or not there was a causal link between the incurring of the expenditure and the earning of interest income that was asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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