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TMI Blog2020 (11) TMI 928X X X X Extracts X X X X X X X X Extracts X X X X ..... act, it is the plea of Ld. AR that such income was always offered to tax as Business Income and the said treatment was never disturbed. The rule of consistency would demand that their being no change in facts or circumstances, the accepted position should not be disturbed. Since the assessee failed to make effective representation before Ld. first appellate authority, we deem it fit to remit the matter back to the file of Ld. CIT(A) for re-adjudication in the light of arguments put forth by Ld. AR before us. If the interest income has been accepted to be the Business Income in all the other years, the said treatment should not be disturbed in this year. Consequently, the assessee would be eligible to claim the deduction of business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the business expenditure of ₹ 27,75,500/- in view of the fact that AO treated the net interest income as income from other sources though the appellant is a Non-banking financial company(NBFC) and widely held Public Ltd. Company which needed to incur such basic administrative expenses for statutory compliances and business purposes. 2.1 Without prejudice and on the facts and circumstances of the case, the Ld.CIT(A) erred in not allowing the administrative expenditure of ₹ 27,75,500/- incurred statutorily which was to be allowed in the hands of a listed public company as business expenditure. 3. Without prejudice and in the alternative, on the facts and circumstances of the case and on merits the Ld. CIT(A) erred in not d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the assessee has been allowed deduction u/s 24 which would cover all deductions, the net interest income of ₹ 14.29 Lacs was to be assessed under the head Income from Other Sources as against Business income offered by the assessee . Consequently, other business expenses claimed by the assessee were not allowed in toto. 3.3 The second issue pertains to disallowance u/s 14A since assessee earned exempt dividend income of ₹ 12.91 Lacs. During the course of assessment proceedings, the assessee computed disallowance at ₹ 2.95 Lacs and submitted that no fresh investments were made during the year and no expenditure was incurred to earn the exempt income. However, not satisfied, Ld. AO applying Rule 8D, worked ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Computation of Income for AYs 2011-12 2012-13 has been placed on record. The Ld. AR further urged that consequently all expenditure incurred by the assessee during the course of its business would be an allowable expenditure. The Ld. DR submitted that the assessee remained negligent in attending the appellate proceedings and the adjudication was done on the basis of assessment order and material on record and therefore, the same would not require any interference on our part. 5. Upon careful consideration, we concur with Ld. AR s submissions that the assessee was registered as NBFC with RBI and would earn interest income by advancing loans. The activity of advancing loans, in such a case, would become assessee s business and naturally, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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