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TMI Blog2018 (6) TMI 1686X X X X Extracts X X X X X X X X Extracts X X X X ..... d there could not be any prohibition for the same, allowed it - assessee claimed that this was business expenditure and this should have been allowed - the Tribunal in permitting this exercise not violated any of the provisions of the Income Tax Act, 1961 - the Tribunal has followed the similar exercise in the case of very Assessee on the prior occasion as well thus, as such no substantial question of law. - Decided in favour of the assessee X X X X Extracts X X X X X X X X Extracts X X X X ..... late payment of tax for various years. However, the claim of set off was declined by A.O, for the reason that the interest paid did not have a nexus with the interest received by the assessee. On appeal, the CIT(A) did find favour with the contentions advanced by the assessee in context of the issue under consideration and allowed its aforesaid claim of setting off of interest income. Aggrieved, the revenue carried the matter in appeal before the Tribunal, which vide its order dated 17.02.2016, being of the view that netting of interest, if any, should be allowed only for the interest paid and received pertaining to the same period, restored the order of the A.O and allowed the appeal of the revenue in context of the issue under considerat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Tribunal passed in assessees own case for A.Y 2005-06. It was further submitted by the ld. A.R that a similar view was also taken by the coordinate benches of ITAT, Mumbai in the case of Cynamid India Ltd. Vs. IAC [ITA No. 4561(Bom)/1982] and Kvaerner Power Gas India Ltd. Vs. Addl. CIT [ITA No. 8914/Mum/2004, dated 10.08.2007]. On the basis of his aforesaid contentions, it was submitted by the ld. A.R that now when the issue involved in the present appeal was squarely covered by the order of the Hon'ble High Court of jurisdiction, therefore, the setting off the interest received by the assessee on the income tax refunds against the interest paid on the taxes to the department, was well in order. Per contra, the ld. Departmental Repre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. Pinto would refer to Section 57 of the Income Tax Act, 1961 in that regard and submit that this course would be adopted by other Assessees as well and in that even the order passed by this Court would come in the way of the revenue in investigating and probing such exercise by other assessees. 4. We do not see how this order can be cited as precedent inasmuch as the Assessee before the Tribunal and before us paid interest to the Income Tax Department amounting to ₹ 10,26,906/-. The Assessee claimed that this was business expenditure and this should have been allowed. The Assessee has received the interest of ₹ 1,07,57,930/-. It was submitted that the amount of interest paid by the Assessee should have been allowed to be se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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