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TMI Blog2014 (6) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... s no change of facts and circumstances in the case in hand – thus, there was no reason to interfere in the order of the CIT(A) – interest income is taxable as income from business - Decided against Revenue. - ITA No. 8314/M/2010 - - - Dated:- 16-5-2014 - Shri P. M. Jagtap And Shri Sanjay Garg,JJ. For the Petitioner : Shri Subhash S. Shetty, A.R. For the Respondent : Shri Ravi Prakash, D.R. ORDER Per Sanjay Garg, Judicial Member: The present appeal has been filed by the Revenue against the order of the Commissioner of Income Tax (Appeals) [(hereinafter referred to as CIT(A)] dated 22.09.10. The Revenue has taken the following grounds of appeal: 1. On the facts of the case and in circumstances of the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said business during the year. The interest income received from loans and advances was not the business income of the assessee and was assessable under the head income from other sources . He further observed that the expenditure debited to the profit and loss account could not be said to have been incurred to earn the interest income. He, however, identified expenses totaling Rs.1,66,392/- as allowable for deduction under section 57(iii) of the Income Tax Act (hereinafter referred to as the Act) and disallowed the balance expenses of Rs.18,37,957/- and added back the same to the income of the assessee. 3. In the first appeal, however, the ld. CIT(A) deleted the said addition made by the AO observing that the interest income was p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced as under: 4 I have considered the issue. There is no dispute that the appellant has not commenced so far its main object business in export-import of general merchandise. However, as per object clause 39 of its Memorandum Article of Association it is authorized to conduct business of lending money. It has been doing so since the Assessment Year 2005-06 and offering interest income as business income. The AO has also been assessing interest income as business income. There is no change in facts and circumstances of the case in the current year. The AO has, therefore, no reason to hold differently in the current year. I, therefore, direct the AO to assess interest income as business income and allow the impugned expenses. This will ..... X X X X Extracts X X X X X X X X Extracts X X X X
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