2016 (7) TMI 753

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..... n of the CIT (Appeals) or the Tribunal. Suffice it to state that these are orders and documents which ought to have been taken into consideration by the CIT (Appeals) as well as by the Tribunal. Be that as it may. The orders, the documents and the effect thereto ought to have been taken into consideration. It would be open for the appellant to contend that the appeals before the CIT (Appeals) and the Tribunal ought to be allowed to be withdrawn or dismissed as infructuous in view of the orders passed under Section 154. In the event of the appellant's being satisfied and accepting the revisional orders under Section 154, they may well not be interested in pursuing the appeal. If such an application is made it is for the Tribunal to decide .....

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..... (iii) Whether under the facts and circumstances of the case, the claim for allowance of the 'direct expenses' attributable to earning of the 'income from other sources' can be declined on the true and correct interpretation of the provisions of section 57(iii) of the Income Tax Act, 1961? 3. It is sufficient to consider this appeal only with respect to the first question. 4. The assessee claims to have secured loans for the purchase of building and machinery. The assessee further claims to have given the said building and machinery on rent. The assessee claimed a deduction under Section 36(1)(iii) of the Act in respect of the loans availed by it. 5. The assessment order was passed on 18.12.2009 against which the .....

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..... e correctness or the effect of the orders under Section 154 or the communications addressed by the Department to the CIT (Appeals). It is possible that at the hearing itself the same may not have been brought to the attention of the CIT (Appeals) or the Tribunal. Suffice it to state that these are orders and documents which ought to have been taken into consideration by the CIT (Appeals) as well as by the Tribunal. Be that as it may. The orders, the documents and the effect thereto ought to have been taken into consideration. 9. For instance, it would be open for the appellant to contend that the appeals before the CIT (Appeals) and the Tribunal ought to be allowed to be withdrawn or dismissed as infructuous in view of the orders passed .....

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