TaxTMI 
TaxTMI 
2017 (4) TMI 1603
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.... in these three appeals are identical, therefore, for the sake of convenience, these appeals are clubbed, heard and disposed of by this consolidated order. 3. At the very outset, it was pointed out that there is delay in filing the present appeal before us. In this respect, our attention was drawn by the Ld. AR towards application for condonation of delay filed by the assessee. As per the contents of the said application, the order of CIT(A) was received by the assessee on 02.09.2010 and the last date for filing the appeal before the Tribunal was 01.11.10. It was submitted by Ld. AR that because of reasons beyond the control of the assessee, the appeal could not be filed within the time and ultimately the same was filed on 23.02.11. As s....
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....x (Appeals) - 20, Mumbai, ["Ld. CIT(A)"] erred in confirming the action of the Assessing Officer ["the A.O."] in framing the assessment order without affording reasonable and fair opportunity of being heard. 1.2 It is submitted that in the facts and the circumstances of the case, and in law, the appellate order is required to be held as bad iii law on account of breach of the principles of natural justice. WITHOUT PREJUDICE TO THE ABOVE: 2.1 The Id. CIT (A) erred in confirming the action of the A.O. whereby the A.O computed the interest income of Rs. 3,00,320/- under the head 'Income from other sources' as against income under the head 'Profits and Gains of Business'. 2.2 While doing so, t....
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....ead 'profits and gains of business'. 12 We have heard the counsels for both the parties as well as the orders passed by revenue authorities, we find that this sole ground raised by the assessee is based on the facts that the assessee credited interest of Rs. 3,00.320/- to the P&L account and claimed as business income by taking a specific stand that the interest was earned on fixed deposits made with banks as margin money towards bank guarantee taken for business purposes. The assessee further claimed that as the bank guarantee was part and parcel of its business activity, therefore the interest earned on fixed deposits was also part of the business income. 13 The Ld. DR appearing on behalf of the revenue relied upon the orders of low....
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....ness income'. The AO was of the opinion that since the assessee is engaged in the business of manufacturing of HDPE pipes, fittings and sprinkler system, the interest is to be taxed under the head 'income from other sources'. The Ld. CIT(A) confirmed the findings of the AO relying upon the decision of the Hon'ble Supreme Court in the case of Pandian Chemicals Ltd.129 Taxman 539. Before us, the Id. Counsel stated that deposits were made out of commercial reasons to avail facilities from the bank and therefore interest received on such deposits should be treated as business income. Per contra, the Id. DR supported the findings of the lower authorities. A perusal of schedule 'G' of current assets forming part of the bal....
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....oltas International Ltd. Vrs ACIT (2010) 2 ITR 410 (Mum. Trib) 11. Shiva Shankar Granites (P) Ltd Vrs. ITO 92001) 81 ITD 106 (Hyderabad) 12. Solvents & Chemicals Vrs. ACIT (2012) 51 SOT 43 (Coch From the cumulative reading of all the aforementioned judgments, we find that the judicial authorities have concluded that where out of business necessity, if funds are to be deployed by the assessee in fixed deposits for opening letter of credit/procuring bank guarantee/margin money, etc. as a necessity of business then in that eventuality the interest earned on such funds is to be taxed under the head 'business income' and not 'income from other sources.' After appreciating the facts of the present case, we are of the consi....