2021 (1) TMI 155

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....' declared by the assessee. 3. Shri Vasudev Ginde, appearing on behalf of the assessee submitted that assessee is a share broker and investor. The assessee is also engaged in money lending business. The ld. Authorized Representative for the assessee submitted that during the period relevant to assessment year under appeal, the assessee earned interest income of Rs. 12,19,55,557/- from money lending business. The assessee offered aforesaid interest income under the head 'Income from Business'. The Assessing Officer in scrutiny assessment proceedings recharacterised the nature of interest income of the assessee as 'Income from Other Sources'. The ld. Authorized Representative for the assessee submitted that in earlier assessment years, the....

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....hould not be accepted. The ld. Departmental Representative further contended that the principle of res-judicata does not apply on proceedings under the Income Tax Act, therefore, no reliance should be placed on the earlier decisions. The ld. Departmental Representative further contentioned that the facts in the impugned assessment year are distinguishable as has been pointed by the CIT(A) in Para 3.2.3 of the impugned order. 5. Rebutting the contentions raised on behalf of the Revenue, the ld. Authorized Representative for the assessee submitted that obtaining of licence from competent authority for money lending business is not a pre-condition. The ld. Authorized Representative for the assessee in support of his contention placed relian....

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....r sources. Whereas the assessee has shown the interest received as income from business. 8. On appeal the Ld.CIT(A) held that the interest received by the assessee is assessable under the head income from business and not under the head income from other sources. While holding so he observed that in the Assessment Years 2007- 08, 2008-09 and 2010-11 the interest received by the assessee was assessed as business income in the assessments completed u/s. 143(3) and therefore principle of consistence is required to be followed in tax matters when facts are identical. With these observations and also referring to the decision of the Hon'ble Jurisdictional High Court in the case of CIT v. Smt Padma S. Bora [54 taxmann.com 319] he con....