The assessee has treated the interest paid on borrowed capital for the establishment of new unit at baddi as revenue expenditure. Where as department has the view that capital borrowed for the purpose of establishing new plant should be capitalised instead of revenue.
ITAT is the final fact finding body and high court cannot decide a question related to fact of the case. However can decide that whether ITAT has rightly decide a matter or not. If high court found that matter was not decided on facts then it can send back matter to ITAT for fresh examination but
We are of the opinion that the findings of the Tribunal are based on evidence on record and are purely factual in nature. The Tribunal after taking into account relevant materials, came to the conclusion that a certain rate of gross profit presented by the assessee was acceptable.
The nature of processing of loose cotton into cotton bales after sprinkling water and mechanically pressing the same is similar to processing camphor powder into camphor cubes. Loose cotton in bulk quantity with lighter density is as a result of pressing converted intocotton bales and to that limited extent it certainly undergoes a change.
Such conclusions of the Commissioner (Appeals) were confirmed by the Tribunal in the impugned judgment. Here also we notice that the observations of the Commissioner (Appeals), as confirmed by the Tribunal, are based on appreciation of evidence and material on record. When two authorities found on facts that no interest bearing funds were directed for making interest-free advances, in our view, no question of law would arise.
The Income Tax Department shall handover the gold jewellery seized by them from the respondent No.2 during the search operation on 25th November, 1988, to the petitioner. This shall be done upon the petitioner approaching the respondent No.1 on 15th October, 2012, between 11.00 to 12.00 hours noon. Such authority shall after verifying the identity of the petitioner and making necessary records, handover such ornaments to the petitioner.
We find that the issue is squarely covered in favour of the assessee and against the Revenue by the decision of Hon’ble jurisdictional High Court in Narmada Chematur Petrochemicals Ltd. (supra). Accordingly, this common issue in the appeals of the Revenue is dismissed.
Counsel for the revenue, however, made faint attempt to contend that even though the order of assessment may not specify charging of interest under the provisions of the Income Tax Act, nevertheless if the computation sheet accompanying such an assessment order includes such demand, the notice for demand may still be valid.
These two appeals arise out of a common judgment of Income Tax Appellate Tribunal dated 17.12.1999. By the said judgment, the Tribunal had dismissed the appeals of the present appellants, that is, assessees and confirmed the decision passed by the Revenue Authorities. The appellants herein and one Smt. Urmilaben A. Patel constituted a partnership firm, having shares of 40%, 40% and 20% respectively.
The fact remains that the actual amount received was offered for taxation. It is only on the basis of the deemed consideration that the proceedings under s. 271(1)((c) started. The Revenue has failed to produce any iota of evidence that the assessee actually received one paise more than the amount shown to have been received by him.
