9911796707
TMI Blog2016 (9) TMI 751X X X X Extracts X X X X X X X X Extracts X X X X ..... .2014. The assessee challenged this order, passed in miscellaneous application of assessee, before the Hon'ble High Court, who vide order dated 15.02.2016 set aside the order of Tribunal dated 19.12.2014 and restored the appeal in ITA No. 427/Del./2010 of the assessee with the following directions given in para 15 & 16 of the decision : "15. In that view of the matter the impugned order dated 19th December, 2014 passed by the ITAT is set aside and the application for rectification filed by the assessee before the ITAT under section 254(2) of the Act is treated as disposed of. However, this would require the restoration of the appeal ITA No. 427/Del./2010 to the file of the ITAT to examine the grounds urged by the assessee on the rule of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing any evidence that it was doing any business activity to allow the business expenditure of the assessee. It was also opined by the Tribunal that the assessee could not demonstrate how the rental income, interest income or dividend income of the assessee is to be assessed as a business income. The assessee tried to seek rectification in the above findings of the Tribunal given vide order dated 12.10.2012 by way of miscellaneous petition, inter alia on the averments that the assessee has never claimed rental income and dividend income as business income; that the Hon'ble Tribunal in assessee's own case for A.Y. 2001-02 has allowed such expenditures holding that the assessee company is carrying on business activity which has been accepted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er dated 19.12.2014 as noted above. Against this order, the assessee approached the Hon'ble High Court for redress and therefore, in view of the aforesaid directions of Hon'ble High Court, the present appeal is being disposed of as follows. 3. We have heard the submissions of both the parties and have carefully gone through the entire material available on record. As per directions of Hon'ble High Court quoted above, the Tribunal has to decide the appeal on the limited issue of treatment of interest income of Rs. 48,312/- earned by assessee - whether business income or otherwise, with reference to rule of consistency so as to decide the business loss claimed by the assessee. As far as the adoption of consistent view is concerned, the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 54/- Loans & Advances 56,66,956/- It is, however, not clear from the balance sheet and profit and loss account filed before us, as to from which heads of above current assets, the assessee has earned interest income of Rs. 48,812/- so as to decide the correct nature of interest income. So, proper examination is required on this count at the stage of Assessing Officer. If the impugned interest is found to have been earned by assessee from investments as per schedule-5 of the balance sheet, such interest income cannot be treated as business income as per Generally accepted Accounting Principles (GAAP) and if it is found that the said interest income was earned by assessee out of their current assets, loans and advances as per sched ..... X X X X Extracts X X X X X X X X Extracts X X X X
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