2017 (4) TMI 1444 - AT - Income Tax

Treatment to income from manufacturing services - Income from other source - HELD THAT - As relying on assessee's own case 2013 (7) TMI 1130 - ITAT MUMBAI and on the principle of consistency, with identical direction, remanded the matter back to the file of the AO for fresh adjudication. Adopting the same principle, on identical directions, we also remand this ground to the file of the AO for fresh adjudication. The assessee be given opportunity of being heard. Thus, this ground of the assessee is allowed for statistical purposes. Disallowance of expenditure pertaining to business activities - HELD THAT - This ground was argued to consequential in nature. CIT-DR did not object to the argument of the assessee that this is consequential in nature. Since, we have remanded the above grounds to the file of the Ld. Assessing Officer, for fresh adjudication, therefore, this ground is also sent to his file being consequential in nature. AO is directed to examine the factual matrix and after giving opportunity to the assessee to decide afresh, consequently, allowed for statistical purposes. Set off of business loss of earlier years - HELD THAT - This ground as argued to be consequential in nature. The Ld. Assessing Officer is directed to examine the issue afresh. The assessee be given opportunity, thus, set-aside to the file of the Assessing Officer, being consequential in nature. Treatment of interest income as income from other sources - HELD THAT - This ground of the assessee is also sent to the file of the Assessing Officer to examine the factual matrix and decide in accordance with law. Thus, this ground of the assessee is allowed for statistical purposes.

Issues:
1. Treatment of income from manufacturing services and lease rental as income from other sources.
2. Delay in filing the appeal before the Tribunal.
3. Disallowance of expenditure pertaining to business activities.
4. Set off of business loss of earlier years.
5. Treatment of interest income as income from other sources.

Issue 1: Treatment of income from manufacturing services and lease rental as income from other sources:
The appellant contested the treatment of income from manufacturing services and lease rental as income from other sources. The Tribunal considered the factual matrix and remanded the matter to the Assessing Officer for fresh examination based on previous orders. The CIT (A) partly allowed the appeal, leading to the current appeal. The Tribunal, following consistency and prior judgments, remanded the grounds to the Assessing Officer for fresh adjudication, allowing the appeal for statistical purposes.

Issue 2: Delay in filing the appeal before the Tribunal:
The appellant cited a delay of 65 days in filing the appeal due to the Managing Director's oversight in passing on the CIT (A) order. The Tribunal condoned the delay, finding reasonable cause, and proceeded to adjudicate the appeal on its merits.

Issue 3: Disallowance of expenditure pertaining to business activities:
The Tribunal remanded this ground to the Assessing Officer for fresh adjudication, as it was argued to be consequential in nature. The Assessing Officer was directed to examine the factual matrix and decide afresh, allowing the ground for statistical purposes.

Issue 4: Set off of business loss of earlier years:
Similarly, the Tribunal directed the Assessing Officer to examine the issue afresh, considering it consequential in nature. The appellant was to be given an opportunity in this regard.

Issue 5: Treatment of interest income as income from other sources:
The Tribunal sent this ground to the Assessing Officer for examination of the factual matrix and decision in accordance with the law, allowing the ground for statistical purposes.

In conclusion, the Tribunal allowed the appeal for statistical purposes, following previous judgments and remanding various grounds to the Assessing Officer for fresh adjudication based on the factual matrix and legal considerations.

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