The assessee was engaged in development and purchased, sold and constructed and leased properties. The assessee was sanctioned a loan from Union Bank of India. The assessee paid\u00a0 certain amount as advance towards purchase of properties. However, on account of adverse market conditions, the assessee decided to withdraw from the transaction and requested\u00a0 party\u00a0 to refund the earnest money.\u00a0 The party refunded the amount. The assessee thereafter lent money to other shareholders and made inter corporate deposits as against interest.\u00a0 The assessee\u00a0 calimed the interest paid as allowable deduction. On appeal the Tribunal disallowed the entire interest expenditure On appeal the Court held that\u00a0 on the facts and circumstances of the case, the assessee was entitled to deduction under section\u00a057(iii)\u00a0of the Act. In any case, the Tribunal exceeded its jurisdiction in disallowing the entire interest expenditure as the power of the Tribunal was limited to passing an order in respect of subject matter of the appeal. Relied on Seth R. Dalmia v. CIT (1977) 110 ITR 644 (SC), CIT v. Rajendra Prasad Moody (1978) 115 ITR 519 (SC), CIT v. Corawara Plastic and\u00a0 General Industries (P) Ltd (2007) 289 ITR 224 (All)(HC) (AY.2009-10).<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 254(1) : Appellate Tribunal-Powers-Jurisdiction of Tribunal confined to subject matter of appeal-Question before Tribunal regarding extent of deduction-Tribunal does not have power to disallow entire deduction. [S. 36(1)(iii), 57(iii)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-29483","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-7Fx","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/29483","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=29483"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/29483\/revisions"}],"predecessor-version":[{"id":29484,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/29483\/revisions\/29484"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=29483"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=29483"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=29483"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}