1978 (9) TMI 123 - AT - Income Tax

Summary

The Appellate Tribunal ITAT Pune ruled in favor of the assessee, allowing the claimed expenses as business expenditure. The company's interest income was considered business income, not income from other sources. The main business of the company was impacted by the Urban Land Ceiling Act, leading it to engage in money lending activities. The interest receipts were deemed taxable as profits and gains of business. The decision cited in CIT, Gujarat vs. Motilal Hirabhai Spinning and Weaving Contended. Ltd. supported this classification. The appeal was allowed.