9911796707
TMI Blog2014 (11) TMI 317X X X X Extracts X X X X X X X X Extracts X X X X ..... me - Though the assessee declared loss, he has disallowed the same - when the assessing authority has chosen to take out the interest income and levied the income tax, the expenditure incurred if any, should have been taken into consideration in arriving at the income - the exercise has not been done – thus, the matter is remitted back to the Assessing authority only to consider whether the assessee has incurred any expenditure permissible in law in earning Interest Income from Banks, so that it could be given deduction before that income is taxed – decided partly in favour of assessee. - Income Tax Appeal No.459 of 2013 - - - Dated:- 23-9-2014 - MR. N.KUMAR AND MRS. RATHNAKALA , JJ. FOR THE APPELLANT : SRI SHANKAR A AND M.LAVA, ADV ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... insofar as the claim of the assessee regarding incurring of expenditure for earning interest and deduction from the income thereof, was not allowed. Aggrieved by the said order, the assessee has preferred this appeal. 3. Learned Counsel for the appellant submits that when the assessing officer did not accept the returns filed by the assessee, declaring a loss of ₹ 22,07,204/- and taxed 'interest received from banks', he ought to have considered the claim of the assessee. The expenditure incurred in earning the said interest to that extent, he should have given deduction. The tribunal failed to appreciate this point by saying that there is no dispute and that all the expenditure incurred by the assessee has been booked in it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Activity. However, these additions are made if any expenditure is incurred as contended by the assessee in respect of the Interest Received from Banks. The authorities ought to have considered whether any expenditure is incurred in this regard. If any expenditure is incurred, then the same should have been deducted out of the interest income. The argument that all these expenditure is booked in the Income and Expenditure Account and therefore, it cannot be separately granting, is without any substance because the assessing officer has not accepted the return filed by the assessee declaring loss. Though the assessee declared loss, he has disallowed the same. When the assessing authority has chosen to take out the interest income and levied ..... X X X X Extracts X X X X X X X X Extracts X X X X
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