2020 (3) TMI 51

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..... usiness or profession'. In the facts of the present case, there is no question of setting off/adjusting the interest on debit side and on the credit side of the profit and loss account. The interest paid by the assessee is directly linked with the business and would be dealt with while calculating the income from business or profession. The lease money and interest income is not income from the business, rather it is income from application of money which might have been earned from business or profession. In such circumstances, there would be no question of netting/setting off the interest paid vis-a-vis the interest received. The Tribunal rightly rejected the contention of the assessee. In the present case, the interest received .....

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..... he same having not been verified. (d) Whether in the facts and circumstances of the case, the interest income of ₹ 21,97,071/- and lease income of ₹ 52,532/- having being put within the domain of income from other sources is legally sustainable as the said had been derived on advance and deposit made. The relevant facts are that the assessee filed income tax return for the year 1991-92 declaring income of 24,20,000/-. The assessee was trader and dealing in export of cycle parts. The assessment was finalised on 16.3.1993 under Section 143(3) of the Act. Certain additions were made and the income earned from leasing and interest on loans and advances given to sister concerns were considered as income under the head  .....

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..... interest and lease money is not income under the head 'profits and gains of business or profession'. In the facts of the present case, there is no question of setting off/adjusting the interest on debit side and on the credit side of the profit and loss account. The interest paid by the assessee is directly linked with the business and would be dealt with while calculating the income from business or profession. The lease money and interest income is not income from the business, rather it is income from application of money which might have been earned from business or profession. In such circumstances, there would be no question of netting/setting off the interest paid vis-a-vis the interest received. The Tribunal rightly reje .....

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