2014 (12) TMI 633

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..... main issue is whether the interest and finance charges are an allowable deduction – the same issue was already a subject matter of appeal before the Tribunal - The Tribunal in respect of the AYs 2000-01, 2001-02 and 2003-04 dismissed the appeals filed by the Revenue on the ground of limitation and not on merits – therefore, the Tribunal has misdirected itself to hold that the assessments in respe .....

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..... wance of interest and finance charges, back to the assessing officer for fresh consideration without considering the issue on merits while disposing the appeal? 2. The assessment in this case relates to the assessment year 2005-06. The appellant is a trader in batteries, torch lights and bulbs etc. For the assessment year in question, the assessee filed returns admitting income of ₹ 19,2 .....

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..... follows: 6. We have perused the orders and heard the rival contentions. There is no dispute that the disallowance of interest on finance charges was confirmed by ld. CIT(Appeals) relying on his predecessor's order in assessee's own case for assessment years 2000-01, 2001-02 and 2003-04. Vide order dated 24th September, 2011 in Miscellaneous Petition Nos.89, 159 160/Mds/2010 filed by .....

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..... sing Officer for fresh consideration in accordance with law. Needless to say, assessee has to be given proper opportunity for explaining its case. 4. Aggrieved by this order of the Tribunal, the Revenue is before this Court. 5. Learned Standing Counsel appearing for the Revenue submits that the Tribunal following its earlier order in respect of the very same assessee for the previous assess .....

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..... enue on the ground of limitation and not on merits. In such view of the matter, the Tribunal has misdirected itself to hold that the assessments in respect of the previous years were quashed and answered the issue in favour of the assessee. We therefore, set aside the order of the Tribunal and remand the matter back to the Tribunal for deciding the matter afresh on merits. In the result, this T .....

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