2012 (5) TMI 725

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....order dated 12.09.2011 of the ld. CIT(A)-XIX, New Delhi, raises the following grounds:- 1. "On the facts and in the circumstances of the case and in law the learned CIT(A) has erred in allowing the appeal of the assessee company by holding that the interest on FDR etc. amounting to ``91,26,226/- was assessable under the head "business income and hence the benefit of set off brought forward busin....

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....sp;Rs. 91,26,226/- from the deposits in the banks and thus, wrongly claimed set off of brought forward business loss against such interest income . To a query by the AO, seeking to assess interest income from deposits in the banks under the head 'Income from Other Sources', the assessee replied that the company was registered as a non banking financing institution and engaged mainly in the....

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....,135 ITR 390(Ker);CIT vs. Jose Thomas,253 ITR 553(Ker.);CIT vs. Manglam Cement Ltd.,217 ITR 369(Raj.);Saraf Textile Industries,217 ITR 507(Raj.);Shree Krishna Polyster Ltd. vs. DCIT,274 ITR21(Bom.); CIT vs. Gimpex P Ltd.,268 ITR 377(Mad.) & CIT vs. Monarch Tools Pvt. Ltd.,260 ITR 258(Mad.), the AO assessed interest income under the head 'Income from other sources' and denied set off of bro....

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....ated 15.6.2011 in the assessee's own case in I.T.A. no.103/D/2011. Since the facts and circumstances in the year under consideration are parallel to the facts and circumstances in the preceding assessment year, wherein the ld. CIT(A) concluded that interest on bank deposits and other interest receipts are to be considered as income from business and not under the head "income from other source....