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TMI Blog2012 (9) TMI 1056X X X X Extracts X X X X X X X X Extracts X X X X ..... business were allowable as deduction. Head of income - under which head interest and miscellaneous income is assessable to tax in the hands of the assessee? - Held that:- As the business had not closed and the claim of expenditure had to be allowed. Respectfully following the said decision of the tribunal we hold that the business of the assessee had not been closed in the relevant year and therefore FDRs had to be treated as pledged in connection with the business which was in existence and therefore the interest income had to be treated as incidental business income. - I.T.A. No. 5244/Mum/2011 - - - Dated:- 26-9-2012 - I.P. Bansal, And Shri P.M.Jagtap For the Appellant : Dr. P. Daniel, Spl.Counsel of Dept. For the Respon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... volved in ground No.1 relating to existence of business, he has relied on the decision of the Tribunal in the case of M/s KNP Securities (P) Ltd. (ITA No.5008 5009/Mum/2007) to hold that the business of the assessee company was neither discontinued nor closed down and, therefore, the expenses incurred in relation to the said business were allowable as deduction. As pointed out by the learned counsel for the assessee, the decision in the case of KNP Services (P) Ltd. (supra) was rendered by the Tribunal relying on the decision of Hon ble Madras High Court in the case of CIT vs. Vellore Electric Corporation Ltd. 243 ITR 529 and the same has been followed by the Tribunal in various cases belonging to the same group to decide a similar issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hare transactions business in 2001 due to allegations of irregularities and manipulations. The case of the assessee is that the order of SEBI had been challenged. The license of the assessee had been cancelled only in the year 2005 and the order cancelling the license had also been challenged by the assessee which was dismissed by SAT much later and the order of SAT was also confirmed by the Hon ble Supreme Court. But these were subsequent activities and in the year under consideration the business of the assessee had not closed and it was only suspended in view of the adverse order of SEBI. We find smaller situation had been considered by the tribunal in case of KNP Securities Pvt. Ltd. (supra) another concern of Ketan Parekh group in whic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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