9911796707
TMI Blog2015 (10) TMI 733X X X X Extracts X X X X X X X X Extracts X X X X ..... was justified in holding that the interest expenditure is not deductible against short term capital gains. - Decided against assessee. Non consideration of revised return of income - According to the assessee, the Ld CIT(A) was not correct in holding that the said fact is relevant only for penalty proceedings - Held that:- We have already noticed that the assessee has filed revised return of income only on 26.07.2010. Under the provisions of sec. 139(5), the revised return of income for the year under consideration could be filed on or before 31.3.2010. Since the revised return of income was filed by the assessee after the expiry of the time limit prescribed under the Act, the AO did not consider the same. As stated earlier, the AO has m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shares . The A.O. did not accept the same and held that the provisions of sec. 48 do not provide for deduction of interest expenses against the Capital gains. The AO, however, expressed the view that the said claim may be allowed against business income. Accordingly, the AO disallowed the claim of interest expenditure, referred above. The Ld CIT(A) also confirmed the same. 4. In the original return of income, the assessee had claimed set off of brought forward unabsorbed depreciation against the business income. However, during the course of assessment proceedings, the assessee filed a revised return of income on 26.07.2010, wherein she withdrew the claim of set off unabsorbed depreciation. However, the AO held that the revised return c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of ascertaining the actual cost arises only for a Capital asset under the head Income from business . In this regard, we may make a gainful reference to sec. 43 of the Act, wherein the expression actual cost is defined. Further Explanation-8 to sec. 43, which reads as under, is more relevant:- Explanation -8 For the removal of doubts, it is hereby declared that where any amount is paid or is payable as interest in connection with the acquisition of an asset, so much of such amount as is relatable to any period after such asset is first put to use shall not be included, and shall be deemed never to have been included, in the actual cost of such asset. Under accountancy principles also, all the expenses incurred upto the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (ITA No.2393/Mum/2012 dated 09.10.2013) (b) Kalyanji J Tanna (decd.), Mumbai Vs. ITO (ITA No.3137/Mum/2010 dated 29.03.2011. (c) S.Balan alias Shanmugam Balakrishnan Chettiar Vs. DCIT (ITA No.1859/PN/2005 dated 31-01-2008) A perusal of the above said decisions shows that the first two decisions were concerned with the interest incurred on applying for Initial Public Offer of shares. There may not be any controversy that the interest expenditure incurred till the date of allotment of shares should be considered past of Cost of acquisition of Shares , as it is in accordance with the principles discussed in the preceding paragraphs. The assessee has furnished only Relevant extract in respect of the decision rendered in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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