https://www.taxtmi.com/caselaws?id=756267 ITAT Delhi allowed the appeal regarding correct head of income classification. The assessee, engaged in leasing and financing business, had interest income from Inter Corporate Deposits and Fixed Deposits reclassified by AO from "Profits and Gains of Business or Profession" to "Income from Other Sources" solely because assessee was not a registered NBFC. ITAT held that MOA clearly defined business objects and lack of NBFC registration cannot justify reclassification. Consistency principle applied as Department accepted business income classification in preceding and succeeding years. ITAT also allowed amortization of preliminary expenses, noting Department's acceptance in other assessment years without valid reason for disallowance in impugned year. en-us Mon, 29 Jul 2024 00:00:00 +0530 Wed, 31 Jul 2024 08:36:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=756267 ITAT Delhi allowed the appeal regarding correct head of income classification. The assessee, engaged in leasing and financing business, had interest income from Inter Corporate Deposits and Fixed Deposits reclassified by AO from "Profits and Gains of Business or Profession" to "Income from Other Sources" solely because assessee was not a registered NBFC. ITAT held that MOA clearly defined business objects and lack of NBFC registration cannot justify reclassification. Consistency principle applied as Department accepted business income classification in preceding and succeeding years. ITAT also allowed amortization of preliminary expenses, noting Department's acceptance in other assessment years without valid reason for disallowance in impugned year. Case-Laws Income Tax Mon, 29 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=756267