2004 (11) TMI 284

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... the interest income and profit on sale of shares at Rs. 1,49,472. 2. During the assessment proceedings the AO noted that the RBI has not granted registration for running the finance activities. Therefore, the interest earned by assessee on money advanced was held as income from other sources and the various expenses claimed in P L a/c were not allowed to be set off against the interest income a .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... case of Smt. Gulab Sundari Bapna vs. Dy. CIT (2001) 79 ITD 455 (Del), the Tribunal has allowed the claim of the assessee. In this case, it was held by the Tribunal as under: "The CIT(A) was justified in holding the 'interest income' as 'business income'. The case of the Revenue was erected on the edifice of fact that the assessee was not regularly engaged in money lending activities and also n .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... vs. Rampur Timber Turnery (1981) 21 CTR (All) 76 : (1981) 129 ITR 58 (All) has held that expenditures incurred for maintaining the status of the company are liable to be allowed. Similar view has been taken by the Madras High Court in the cases in CIT vs. Gannon Dunkarlay Co. (P) Ltd. (1999) 152 CTR (Mad) 106 : (2000) 243 ITR 646 (Mad) and 152 ITR 106 (sic). Therefore, in view of these facts and .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X