9911796707
TMI Blog2012 (6) TMI 878X X X X Extracts X X X X X X X X Extracts X X X X ..... l income for A.Y. 2007-08. Assessee's case was selected for scrutiny. As observed by the AO, assessee stated that there was no business activity carried out during the financial year 2006-07 and the only income earned was by way of interest on loans advanced to the sister concerns. Assessee has claimed professional charges of ₹ 3,34,750/-. The AO observed that the assessee stated that the said professional charges are paid for the legal proceedings before the Hon'ble Bombay High Court relating to the Garden Plot. Assessee further stated that it had made the investment in the Garden Plot at Andheri which was compulsorily acquired by the authority in the previous assessment year and the assessee had filed an appeal for the amount of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as a litigation between the flat owners and the assessee company in the Hon'ble Bombay High Court (OOCJ). Subsequently, there was out of court settlement but assessee has to incur the expenditure for defending the Civil Suit. So far as the "Dheeraj Project" is concerned, in para 6.1 of the remand report the AO has stated that except the payment made to A.A. Walawalkar the professional charges were paid in respect of the suit filed in the Hon'ble Bombay High Court being Suit No. 3144 of 2006. I find that the assessee has declared the income from the "Dheeraj Project" and in respect of the Dheeraj Project there was litigation between the flat owners and the assessee. In para 6.6 of the remand report the AO admitted that the assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee has received the amount from the government towards acquisition of the Garden Plot and the said funds were given to the sister concern as the same were not required by the assessee. He submits that the funds were temporarily parked and hence, the interest income is to be treated as business income. I have also heard the learned D.R. 10. Admittedly, in the present case the assessee has no business activity. As submitted before me, one Garden plot was acquired by the government and the assessee received compensation and the amount of compensation received by the assessee was utilised for giving advances to some parities, which were claimed to be the sister concerns. In my opinion the argument of the learned counsel cannot be accepted. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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