9911796707
TMI Blog2022 (9) TMI 1556X X X X Extracts X X X X X X X X Extracts X X X X ..... tself about the legal position, more particularly the decision of Malabar Industries Ltd. v[ 2000 (2) TMI 10 - SUPREME COURT] the tribunal took note of the contention of the assessee that the overdraft facility has been granted on the security of the fixed deposit and, therefore, the interest on the overdraft and the interest on the fixed deposits are inter-linked. Assessee has used its fixed deposits for taking overdraft facilities without encashing the fixed deposits and the interest on the overdraft has a direct nexus with interest accruing in the fixed deposit and, therefore, the interest on the overdraft has been adjusted with the fixed deposit interest and the net interest income has been shown as other income. Tribunal has not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13-14 and 2014-15. The revenue has raised the following substantial questions of law for consideration: (i) Whether the Learned Tribunal has committed substantial error in law by quashing the order passed under Section 263 of the Income Tax Act, 1961 without applying its judicial mind ? (ii) Whether the Learned Tribunal has committed substantial error in law in not holding that the order passed by the Assessing Officer under Section 143(3) of the Income Tax Act, 1961 is erroneous and prejudicial to the interest of the Revenue ? (iii) Whether in the facts of the case and in law the Hon ble ITAT was correct in holding that the view taken by the Assessing Officer was not unsustainable in law, when, in fact, excess relief in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st and the net interest income has been shown as other income. The learned tribunal has noted that the assessing officer had enquired into this aspect and had taken one of the plausible view of netting off of interest expense with interest income, in the light of the decision of the Hon ble Supreme Court in the case of ACG Associated Capsules (P) ltd. vs. CIT reported in (2012) 18 taxmann.com 137 (SC). Further, the tribunal after going through the entire records placed before it has recorded a finding that the assessing officer, after making proper enquiry and proper application of mind has framed the assessment under Section 143(3) of the Act and, therefore, the assessment order cannot be termed to be erroneous and prejudicial to the in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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