SEZ-unit profit deduction covers voluntary transfer-pricing adjustments, while exempt-income costs, foreign-exchange loss and ITeS comparables are exa...
Infrastructure-development deduction remains available to EPC contractors when substantive statutory conditions outweigh contractor labels in agreemen...
Explained Investment Sources: documented gifts and traceable salary savings supported deletion of additions for property and mutual-fund SIP investmen...
Internal comparable pricing supports arm's-length interest on compulsorily convertible debentures, preventing their recharacterisation as equity for t...
The Income Tax Appellate Tribunal held that the interest income receipts of the assessee should be treated as "business income" and not "income from other sources". The Tribunal found no infirmity in the assessee's explanation of incurring losses in the business during the year, nor any finding by the Department on the assessee's contention of making efforts to obtain an NBFC license from RBI. The mere absence of an NBFC license does not affect the character of income earned, as the license only makes the activity legal. The fact that the assessee consistently returned identical income as business income strengthened their case. Consequently, the assessee's appeal was allowed, treating the interest income as business income with all claimed expenses allowed against the same.
The Income Tax Appellate Tribunal held that the interest income receipts of the assessee should be treated as "business income" and not "income from other sources". The Tribunal found no infirmity in the assessee's explanation of incurring losses in the business during the year, nor any finding by the Department on the assessee's contention of making efforts to obtain an NBFC license from RBI. The mere absence of an NBFC license does not affect the character of income earned, as the license only makes the activity legal. The fact that the assessee consistently returned identical income as business income strengthened their case. Consequently, the assessee's appeal was allowed, treating the interest income as business income with all claimed expenses allowed against the same.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4879 
