2011 (3) TMI 1357

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..... the appellate authority on this issue and remand the matter to the officer to consider the issue with reference to the amended provisions after giving opportunity to the assessee Disallowance of interest on diversion of borrowed funds for non-business purposes - Held that:- counsel for the assessee opposed stating that the Tribunal's findings are sustainable, appeals allowed on this issue also b .....

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..... or sustaining the interest levied under Section 234A, B and C are concerned, Standing Counsel brought to our notice retrospective amendment to the Sections justifying the levy. If amendment made retrospectively is not declared invalid by the court, then the same binds on statutory authorities including the Tribunal. Since the assessment was completed prior to the amendment and none of the authorit .....

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..... in the above judgment, the matter should be reconsidered by the officer in the light of the judgment above stated with reference to facts available in this case. We, therefore, allow the appeals on this issue also by setting aside the orders of the Tribunal and that of the first appellate authority and remand the matter to the officer to reconsider the disallowance of proportionate interest on bo .....

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