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TMI Blog2019 (3) TMI 684X X X X Extracts X X X X X X X X Extracts X X X X ..... at the same time not directing the AO to compute loss under the head 'income from business' at Rs. 16,39,113/-. 2. The Ld. CIT(A) has erred on facts and in law in not giving finding on the alternate contention of the assessee that by assessing the interest income of Rs. 11,61,823/- as income from other sources and at the same time not allowing the business loss which the assessee has made it as a part of stock-in-trade, such amount has been taxed twice. 3. The assessee craves to amend, alter and modify any of the grounds of appeal. 4. The appropriate cost be awarded to the assessee." 2. The assessee is a company incorporated on 08/02/2005 with the object to construct commercial and residential complex. The assessee company participa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer held that since the lending activity of the assessee is an independent activity and not connected with the business activity, therefore, the interest income is assessed under the head income from other sources. The assessee challenged the action of the Assessing Officer before the ld. CIT(A) but could not succeed. 3. Before us, the ld AR of the assessee has submitted that once the assessee commenced its business in the F.Y. 2005-06 itself then the interest on the surplus amount is nothing but business income of the assessee. Since the assessee has incurred expenditure of Rs. 16,39,112/- under various head, which are mainly on advertisement, exhibition expenses, consultancy charges etc., therefore, the outcome is business loss under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relevant material on record. The dispute is only regarding the treatment of interest income as income from other sources and the expenditure incurred by the assessee can be set off against the interest income. We find that the assessee after allotment of the land by the JDA has also received advance booking amount of Rs. 1.25 crores and in that process the assessee has incurred an expenditure of Rs. 16,39,112/- under the head advertisement, exhibition expenses, consultancy charges etc.. Thus, these activities of the assessee clearly reveals the commencement of the business by the assessee. Even otherwise the Assessing Officer while dealing with the issue has accepted the fact that the assessee has commenced its business in the F.Y. 2005-06. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was earned by the assessee on intentional activity of lending. It is not a simple case of parking the money in the bank but the assessee has deliberately given the advances in the market for earning the interest. Hence, we concur with the view of the Assessing Officer on the point that the interest earned by the assessee from giving loan by the assessee in the market is income from other sources and not the business income. However, since the assessee already commenced the business in the F.Y. 2005-06 and has now incurred expenditure of Rs. 16,39,112/- on account of advertisement, exhibition, consultancy charges which are an allowable business expenditure, then the said business expenditure will be business loss for the year under consid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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