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TMI Blog2013 (2) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... should not give rise to a situation where the assessing authority is likely to feel incommoded by it The A.O. need not be confined to those guidelines only and can travel much beyond them, if the inquiry justifies it and can take into account all the attendant and relevant facts and circumstances of the case, without being confined to those guidelines – In favour of revenue - IT APPEAL NO. 323 OF 2010 - - - Dated:- 30-10-2012 - S. RAVINDRA BHAT AND R.V. EASWAR, JJ. Ms. Rashmi Chopra for the Appellant. S. Krishnan for the Respondent. ORDER R.V. Easwar, J. - The Revenue which is in appeal is aggrieved by the order of the Tribunal restoring the issue of allocation of interest expenditure back to the assessing of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see carried the matter in appeal to the CIT (Appeals) and contended that the bifurcation between speculation and loans and advances was not justified and that both the activities should be considered as business activities giving rise to an assessment under the head 'business'. Obviously the assessee wanted this because in that case the entire interest and financial charges incurred by it would be allowed as a deduction without being bifurcated. The CIT (Appeals) found merit in the assessee's contention and held as under: - "I have considered the facts of the case. In the case reported in 232 ITR 7, the Hon'ble High Court has held that once capital has been borrowed for the purpose of business, it is immaterial as to how the borrowed mone ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew the ratio laid down by the special bench and after giving due opportunity to the assessee." 6. The grievance of the Revenue is not so much against the remand as it is against the rider placed by the Tribunal that the assessing officer, while deciding afresh the allocation of interest expenditure, should "keep in view" the ratio laid down by the Special Bench (supra). The contention of the assessee on the other hand is that the assessing officer invoked the Explanation to section 73 merely to thwart the assessee's claim for deduction of interest and financial charges and that the distinction made by the assessing officer between the two types of activities - share dealing and advancing of loans - was artificial. It is also contended tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not contemplated by the Special Bench (supra) and necessitate deeper considerations than what was visualized by the Special Bench and to that extent the fears expressed by the Revenue cannot be said to be wholly unjustified. A perusal of the extract from the order of the Special Bench quoted in the impugned order of the Tribunal shows that they are, as rightly pointed out on behalf of the assessee, in the form of broad and general guidelines and can be kept in view while deciding the question. At the same time the assessing officer need not be confined to those guidelines only and can travel much beyond them, if the inquiry justifies it and can take into account all the attendant and relevant facts and circumstances of the case, without b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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