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TMI Blog2016 (1) TMI 743X X X X Extracts X X X X X X X X Extracts X X X X ..... the case by treating the interest income of Rs. 64,45.020/- as business income by ignoring the facts of the case that the assessee company is neither a financial institute not a banking company." 2. The Commissioner of Income Tax (Appeals), Lucknow has erred in law and on the facts of the case in deleting the addition of Rs. 13,24,106/- u/s 69 of the Income Tax Act, 1961 made on account of investment from undisclosed source. The CIT(A) failed to appreciate that the amount of Rs. 13,24,106/- was difference between the value determined by the valuer and value of investment disclosed by the assessee. 3. The Commissioner of Income Tax (Appeals), Lucknow has erred in law and on the facts of the case in deleting the addition of Rs. 3,00,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidered. 6. We have considered the rival submissions. We find that in Para 5 of the written submission appearing on pages 2 and 3 of the paper book are the submissions of Ld. AR regarding the issue raised by the Revenue in its appeal and also regarding the issues raised by the assessee in its CO. This Para is reproduced herein below for the sake of ready reference: "5) Submissions with regard to ground of appeal Ground No. 1 The department is not justified in raising a new point that assessee company is neither a financial institute nor a banking company. The Assessing officer had neither considered this issue nor the first appellate authority. This ground cannot be taken before the honourable Tribunal. In this regard photocopy of d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered in the case of Dr. (Mrs.) Chandrawati Vs. CIT 164 Taxman 24 (Alld.). In this case, it was held by the Hon'ble Allahabad High Court that if a new claim is before the Tribunal, which was not raised before the AO or CIT(A), the Tribunal was perfectly justified to refuse to entertain such claim. In the present case, it is not the case that a new claim has been raised by the Revenue before the Tribunal. In fact in the present case, the AO has assessed the interest income of Rs. 64,45,020/- as income from other sources by following the judgment of the Hon'ble Allahabad High Court rendered in the case of CIT Vs. Indo Gulf Fertiliser and Chemicals Corporation Ltd. reported in 280 ITR 621 (All). The Ld. CIT(A) has held that the AO was not justi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erial to show that interest income is taxable under any other head except income from other sources and therefore, we are of the considered opinion that the order of the Ld. CIT(A) is not sustainable because interest income is definitely taxable under the head income from other sources, until and unless, it is shown by the assessee that this interest income is taxable under some other head and since in the present case, the assessee has not so established, we hold that the interest income in the present case is correctly assessed by the AO under the head income from other sources. Hence, we reverse the order of the Ld. CIT(A) on this issue and restore that of the AO. Accordingly, Ground No.1 of the Revenue is allowed. 8. Regarding Ground n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 3,74,400/- and Rs. 20,000/- out of staff welfare expenses of Rs. 2,18,187/-. When the assessee carried out the matter in appeal before the Ld. CIT(A), the ld. CIT(A) held that the disallowance of Rs. 50,000/- is reasonable out of commission expenditure and disallowance of Rs. 10,000/- is reasonable out of Staff Welfare and in this manner, he allowed relief of Rs. 60,000/- Now the Revenue is in appeal for this relief of Rs. 60,000/- allowed by the CIT(A). The assessee has raised the CO and disputed the disallowance of Rs. 50,000/- confirmed by the Ld. CIT(A) out of brokerage expenditure. Ld. AR reiterated the same contentions which were raised before the CIT(A) and Ld. DR of the Revenue supported the assessment order. 10. We have consi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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