2012 (7) TMI 970 - AT - Income Tax

Summary

Issues involved: Appeal against the appellate order dated 16-9-2011 of the CIT(A)-I, Bangalore for the assessment year 2007-08.

Grounds of appeal:
1. Challenge to the validity of the reassessment u/s 147 of the Act.
2. Allegation that assessing officer's reasons amount to suspicion, not belief.
3. Dispute over the total income assessed compared to returned income.
4. Taxation of interest income from fixed deposits of corporate member banks.
5. Disagreement on whether banks are corporate members and application of mutuality principle.
6. Claim for proportionate expenditure against interest earnings.
7. Objection to applying jurisdictional high court's decision when matter is sub-judice.

Details of the Judgment:
The assessee, M/s. Bangalore Club, appealed against the CIT(A)'s order for the assessment year 2007-08. The grounds of appeal included challenging the validity of the reassessment under section 147 of the Income Tax Act, alleging that the assessing officer's reasons were based on suspicion, disputing the assessed total income, questioning the taxation of interest income from fixed deposits, and claiming proportionate expenditure against interest earnings. The Tribunal considered the material submitted by the assessee, including judgments and orders from various courts and tribunals. The Tribunal, following its previous orders for other assessment years, remitted the matter back to the assessing officer for reevaluation in accordance with the law. The Tribunal also addressed the issue of charging interest u/s 234B of the Act, deeming it consequential and directing the AO to provide relief while reconsidering the other issues. Ultimately, the assessee's appeal was allowed for statistical purposes, and the order was pronounced in open court on 17th July 2012.