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TMI Blog2014 (8) TMI 841X X X X Extracts X X X X X X X X Extracts X X X X ..... erred in confirming the disallowance of business expenditure of Rs. 6,15,939/-. 3. The Ld. CIT(A) erred in treating the income received by the assessee for providing amenities as income from other sources instead of income from house property. 4. The assessee is engaged in the business of letting out property and Financial & Investment activity in shares and securities. For the year under consideration, the assessee received interest income at Rs. 96,97,479/- and rent at Rs. 17,96,792/-. The interest income has been offered under the head profits and gains of business or profession and rental income under the head Income from house property. 4.1. During the course of the scrutiny assessment proceedings, the assessee was asked to justify ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed premises therefore the same has been shown under the head Income from House property. The AO was not convinced with the reply of the assessee and went on to tax the receipts from amenities under the head Income from other sources. The AO further disallowed the expenditure claimed by the assessee. 5. Aggrieved by this, the assessee carried the matter before the Ld. CIT(A). 6. After considering the facts and the submissions, the Ld. CIT(A) observed that the assessee was not engaged in money lending business. The assessee has earned interest only on the money advanced by it to its sister concern. Therefore, the interest income cannot be said to be in the ordinary course of the business and went on to confirm the action of the AO by treati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business but ancillary object clearly show that the assessee is engaged in financial activities. Since the only the taxability of the head of income is under dispute, in our considered view, considering the nature of activities of the assessee, we have no hesitation to hold that the income from interest should be taxed under the head profits and gains of business or profession. We, accordingly direct the AO to treat the interest income under the head "Profits and Gains of Business or Profession. Having held that, we direct the AO to consider the claim of expenditure under the head "Profits and Gains of business or profession as per the provisions of law after due verification and after giving reasonable opportunity of being heard to the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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