2011 (9) TMI 1069 - AT - Income Tax

Summary

Issues involved: Appeal against order of Commissioner of Income-tax (Appeals) regarding taxability of interest income on fixed deposits and validity of proceedings u/s 147 of the Income-tax Act.

ITA No.791/Bang/2010:
The assessee challenged the order confirming taxability of interest income on fixed deposits and disallowance of authorized expenditure. The issue had arisen in earlier assessment years and was stayed by the Supreme Court. The Tribunal remitted the issue to the Assessing Officer to await the Supreme Court's decision and decide on expenditure incurred for earning interest income.

ITA No.792 to 796/Bang/2010:
Apart from the taxability of interest income issue, the validity of proceedings u/s 147 was raised for assessment years 2002-03. The Assessing Officer was required to furnish reasons for reopening the assessment, which was not done in this case. The Tribunal remitted this issue to the AO to provide reasons for reopening the assessment and decide accordingly. Consequential relief was directed to be given for chargeability of interest u/s 234B and 244A.

The Tribunal allowed the appeals of the assessee for statistical purposes, pronouncing the order on 6th Sept, 2011.