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TMI Blog2024 (9) TMI 419X X X X Extracts X X X X X X X X Extracts X X X X ..... s Profit and Loss Account for the Financial Year 2016-17 is concerned. DR for the department does not dispute this fact. No doubt, when interest is paid on the income tax refund amount, same is required to be reported under the head income from other sources. Here, interest was admittedly allowed u/s 244A of the Act and the assessee firm somehow treated and depicted the said amount as business income, instead of income from other source, but there cannot be said to be any loss to the exchequer, particularly, when the assessee is said to have paid tax on said income at the same rate, even though under a different heading. The appeal filed by the assessee challenging the impugned order as regards the addition due to income by way of interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, an addition of Rs. 15,66,620/- was made by the Assessing Officer by observing that the interest on amount of refund was to be treated as income from other sources. 4. As regards the above said finding on the point of interest on refund, ld. CIT(A) upheld the same while observing that the interest income was income from other sources. At the same time, ld. CIT(A) held that interest income to the tune of Rs. 4,88,959/- only was the income from other sources. In this manner, the ld. CIT(A) deleted an addition of Rs. 10,77,661/- made by the AO, and upheld the addition and to the extent of Rs. 4,88,959/-. 5. Hence, this appeal 6. Arguments heard. File perused. 7. As noticed above, the appeal filed by the appellant came to be dismissed by ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d income from other sources. Here, interest was admittedly allowed u/s 244A of the Act and the assessee firm somehow treated and depicted the said amount as business income, instead of income from other source, but there cannot be said to be any loss to the exchequer, particularly, when the assessee is said to have paid tax on said income at the same rate, even though under a different heading. 11. In view of the above discussion, the appeal filed by the assessee challenging the impugned order as regards the addition due to income by way of interest on refund, deserves to be allowed, and the addition deserves to be deleted. Result 12. In view of above findings, the only argument raised on behalf of the appellant is accepted, and while allow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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