2019 (6) TMI 1508

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.... the ld. CIT(A) has erred in confirming the capitalization of expenses incurred by the assessee to earn interest income as pre-operative expenses. 2. The appeal filed by the assessee is delayed by 3 days, for which, the ld. Counsel for the assessee has filed a petition in support of an affidavit for condonation of the delay, to which; the ld. DR has not raised any serious objection. Consequently, since the assessee was prevented by sufficient cause, the delay of 3 days in filing of the appeal stands condoned and the appeal is admitted for adjudication. 3. The brief facts of the case are that the assessee filed its return of income for the assessment year 2013-14 on 30.09.2013 declaring income of Rs..2,23,44,930/-. This case was select....

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.... case for the assessment year 2012-13 and prayed for following the same. On the other hand, the ld. DR supported the orders of authorities below. 6. We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. On similar facts and circumstances in an identical issue in assessee's own case for the assessment year 2012-13 was subject matter in appeal before the Tribunal and vide order dated27.08.2018 in I.T.A. No. 1242/Chny/2017, the Coordinate Benches of the Tribunal has observed and held as under: "3. The brief facts of the case are that the assessee is a private limited company engaged in finance, hotel & real estate business, e- filed its return of income for the....

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....rds earning interest can be allowed as deduction while computing the net interest income of the assessee which has to be taxed under the head "Income from other source". Hence it was pleaded that the order of the Ld. CIT(A) may be confirmed. 6. We have heard the rival submissions and carefully perused the materials on record. From the facts of the case, it is abundantly clear that during the relevant assessment year, the assessee was only engaged in the business of financial services though the main objects in the Memorandum of Association was Hotel Business. It is pertinent to mention that the ancillary objects in the Memorandum of Association also permitted the assessee company to carry on the business of financial services. In t....