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TMI Blog2012 (12) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT [1999 (9) TMI 4 - SUPREME COURT] Disallowance of Interest - Assessee submitted that when the consistent case of the assessee is that they had not expended anything in making investment for the tax free securities, the Tribunal committed serious error in upholding the order of the authorities below restricting 2% of the income earned towards the estimated expenditure. Learned counsel for the assessee pointed out that when the assessee had not expended anything on the investment in securities, there is no question of proving any such expenditure in earning income from tax free securities. It is seen from the order of the assessment that the assessee earned income from investment on tax free securities as specified in Section 10(15) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellate Tribunal is right in law in holding that the addition in respect of appreciation in the value of securities based on the differentiation of securities between permanent and current securities? 2. Whether, on the facts and circumstances of the case, the Tribunal ought not to have deleted the entire addition on account of the appreciation in the value of securities, amounting to Rs.2,68,97,356? 3. Whether, on the facts and circumstances of the case, the Tribunal is right in law in disallowing the estimated amount of Rs.1,96,641/- out of the total expenditure claimed by the appellant as apportionable to earning income from tax free securities?" 2. Even though the above appeal is admitted on the above three questions of la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , relating to assessment year 1991-92, would govern the issue herein. Consequently, the above questions are answered against the assessee. 4. Apart from this, yet another question which arose in this case, which reads as follows:- "Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal is right in law in not considering the contention raised by the appellant as regards set off of carried forward losses of earlier years, which claim was not considered by the Commissioner of Income Tax (Appeals) while disposing of the appeal?" 5. As far as this question of law is concerned, a perusal of the grounds of appeal raised before the Tribunal shows that the assessee filed appeal before the Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered by us in T.C. 455 of 2008, we set aside the order of the Tribunal and remand the same to the Assessing Officer for his consideration on the issue in terms of the decision of the Apex Court in the case of UCO Bank Vs. CIT reported in 240 ITR 355. 7. As far as the third question of law on the disallowance of the estimated cost of Rs.1,96,641/- is concerned, as apportionable to the earning of the income tax paid, learned counsel for the assessee submitted that when the consistent case of the assessee is that they had not expended anything in making investment for the tax free securities, the Tribunal committed serious error in upholding the order of the authorities below restricting 2% of the income earned towards the estimated expendit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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