2004 (11) TMI 284

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....rious expenses incurred on maintaining the establishment at Rs. 73,268 against the interest income and profit on sale of shares at Rs. 1,49,472. 2. During the assessment proceedings the AO noted that the RBI has not granted registration for running the finance activities. Therefore, the interest earned by assessee on money advanced was held as income from other sources and the various expenses ....

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....he interest income was held as business income. On similar circumstances in the case of Smt. Gulab Sundari Bapna vs. Dy. CIT (2001) 79 ITD 455 (Del), the Tribunal has allowed the claim of the assessee. In this case, it was held by the Tribunal as under: "The CIT(A) was justified in holding the 'interest income' as 'business income'. The case of the Revenue was erected on the edifice of fact tha....

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....he assessee deserve to succeed. 5. The Hon'ble Allahabad in the case of CIT vs. Rampur Timber Turnery (1981) 21 CTR (All) 76 : (1981) 129 ITR 58 (All) has held that expenditures incurred for maintaining the status of the company are liable to be allowed. Similar view has been taken by the Madras High Court in the cases in CIT vs. Gannon Dunkarlay & Co. (P) Ltd. (1999) 152 CTR (Mad) 106 : (2000)....