2015 (7) TMI 479

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..... nds. M/s. JMC Securities Pvt. Ltd. During the year under consideration, earned interest income to the tune of 9,16,088/- which constituted about 70% of its total business income amounting to 13,04,088/-. The maximum amount of loan advanced by the company during the year under consideration was to the tune of 95,45,000/-. That constituted 32% of the total funds available with the said company. In these circumstances, the Tribunal concluded that that the lending of money is a substantial part of the business of M/s. JMC Securities Pvt. Ltd. The addition made by the assessing officer and sustained by the Commissioner was not valid and legal, particularly in the background facts. In the light of the undisputed factual position, we are of the vi .....

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..... ns and advances were obtained from M/s. JMC Securities Pvt. Ltd. but money lending was not a substantial part of the business of that company. In other words, lending of money was not a substantial part of the business of M/s. JMC Securities Pvt. Ltd. from whom loan was obtained by the assessee. The Commissioner had observed that M/s. JMC Securities Pvt. Ltd. was advancing money only to one entity, namely, M/s. Sonal investment. Rest of the sums were advanced to the employees of M/s. JMC Securities Pvt. Ltd., therefore, the exclusionary clause was not applicable and reliance placed on the judgment of this Court in the case of CIT v. Parle Plastics Ltd. [2011] 332 ITR 63 was entirely misplaced. 4. We have perused the appeal paper-book with .....

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..... ferred to the assessment order in the case of M/s. JMC Securities Pvt. Ltd. for the year under consideration, namely 2006-07, wherein the nature of the business of that company was indicated as finance. The company continued in the business of short term finance of idle funds. M/s. JMC Securities Pvt. Ltd. During the year under consideration, earned interest income to the tune of ₹ 9,16,088/- which constituted about 70% of its total business income amounting to ₹ 13,04,088/-. The maximum amount of loan advanced by the company during the year under consideration was to the tune of ₹ 95,45,000/-. That constituted 32% of the total funds available with the said company. In these circumstances, the Tribunal concluded that that .....

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