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TMI Blog2013 (7) TMI 577X X X X Extracts X X X X X X X X Extracts X X X X ..... nnot be claimed - Assessee is in the business of purchasing raw cotton and ginning the same. It is a seasonal business. The interest income was generated out of spare funds invested in the fixed deposit. Such income was declared as part of the business income and that is how even the Assessing Officer had accepted the same - Decided against Revenue. - TAX APPEAL NO. 316 OF 2013 - - - Dated:- 25-4-2013 - AKIL KURESHI AND MS. SONIA GOKANI, JJ. For the Appellant : K.M. Parikh. ORDER:- PER : Akil Kureshi The revenue is in appeal against the judgment of the Income Tax Appellate Tribunal dated 07.09.2012 raising following question for our consideration: "Whether on the facts and in the circumstances of the case, the Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Rs. 4.90 lacs (rounded off). He made disallowances accordingly. 3.2 The assessee carried the matter in appeal. CIT(A) rejected the assessee's appeal and confirmed the view of the Assessing Officer upon which, the assessee approached the Tribunal. The Tribunal, by the impugned judgment, reversed the decision of the revenue- authorities and allowed the assessee's appeal making following observations: "9. We have heard the rival submissions and perused the material on record. It is an undisputed fact that assessee has earned interest of Rs. 22,23,006/- on F.D.'s and paid interest of Rs. 10,40,234/- on money borrowed. The net interest income of Rs. 11,82,769/- has been credited to P L account and included in the net profit and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period of authorization for such payment by any earlier partnership deed does not cover any period prior to the date of such earlier partnership deed; or (iv) any payment of interest to any partner which is authorized by, and is in accordance with, the terms of the partnership deed and relates to any period falling after the date of such partnership deed in so far as such amount exceeds the amount calculated at the rate of [twelve] per cent simple interest per annum; or (v) any payment of remuneration to any partner who is a working partner, which is authorized by, and is in accordance with, the terms of the partnership deed and relates to any period falling after the date of such partnership deed in so far as the amount of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rposes of determining the allowable deduction of remuneration paid to the partners under Section 40B of the Act. 8. Counsel for the revenue vehemently contended that for the purpose of ascertaining the limit, only business income would be relevant and not any other income. In the present case, however, we need not enter into such controversy. The assessee had held out that it is in the business of purchasing raw cotton and ginning the same. It is a seasonal business. The interest income was generated out of spare funds invested in the fixed deposit. Such income was declared as part of the business income and that is how even the Assessing Officer had accepted the same. That being the position, and the Assessing Officer in the assessment t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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