AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2014 (3) TMI 1130
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....ovision for non-performing assets as deduction. The counsel for the assessee referring to pages 1 to 8 of the paper book submits that this issue is squarely covered by the decisions of the co-ordinate Bench of this Tribunal in assessee's own case for the assessment years 2000-01 to 2007-08. On reading of the decision of the coordinate Bench of this Tribunal, we find that the issue in appeal regarding claim for deduction of provision for nonperforming assets has been decided in favour of the assessee in ITA Nos. 1646 to 1648/Mds/2010 for the assessment years 2003-04 , 2004-05 & 2007-08 by order dated 16.12.2010 observing as under:- "2. Short facts apropos are that the Assessing Officer had considered the finance charges on non-performing a....
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....ologies (supra) was with regard to provisioning made for non-performing assets and it could not be extended to interest accrued on non-performing assets. Learned Departmental Representative further submitted that the issue was squarely covered by the decision of Hon'ble Madras High Court in the case of CIT Vs. Elgi Finance Ltd. (supra) as also the decisions of this Tribunal in the case of Elgi Finance Ltd. and Sakthi Finance Ltd. for assessment years 1995-96 to 1998-99 in ITA Nos.1879 to 1881/Mds/2004 and ITA Nos.3409 to 3411/Mds/2004 dated 11th June, 2010. 4. We have perused the orders and heard the rival submissions. We find that the issue is squarely covered in favour of the assessee by the decision of jurisdictional High Court in asse....
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....er the head "income from house property". 6. Counsel for the assessee submits that assessee has received rental income for the year ended 31.3.2009 from the properties and the properties were originally intended for housing officers of the assessee company to take care of its requirements of office space for the envisaged expanded business plan. The assessee had plans to engage in multifarious financial activities such as gold loan, lease financing etc., thus properties were held for its own use. The counsel submits that initially assessee had been concentrating on hire purchase financial activities only and the other financial activities were to be taken up subsequently and in order to exploit the business asset, the assessee had let thes....
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....ated the rent received by the assessee from the assets as income from house property stating that as per the provisions of the Act, rental income in its normal connotation has to be assessed as income from house property. Therefore, he assessed the income as income from house property instead of income from business. The Commissioner of Income Tax (Appeals) on examining the facts, submissions of the assessee and the case laws held that the income received by the assessee from exploiting business assets of the assessee is to be assessed as income from business and not under the head "income from house property". The Commissioner of Income Tax (Appeals) also observed that in earlier years, the assessee was offering rental income under the hea....
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....ncome derived there from would amount to business income, otherwise it would be income derived from property assessable under the head "Property income". On the facts, the Tribunal had found in the present case that the property in question was a commercial asset, which was used by the assessee as such in the beginning and later on after shifting its branches to outside stations, the second floor had become surplus and was exploited by the assessee by letting it out to others. Therefore, the rental income derived therefrom was rightly assessable under the head "Business income". 9. The Hon'ble Allahabad High Court on a similar issue in the case of Scientific Instrument Company Ltd. Vs. CIT (supra) held as under:- "All the assets of the b....