2023 (5) TMI 1323

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....itted that the assessee preferred an appeal before the Income Tax Appellate Tribunal against the order of learned C.I.T. (Appeals) for Asst. Year 2010-11 raising several grounds of appeal, including, challenging the addition with respect to interest income from staff loans and advances amounting to Rs.73,46,000/- as income from other sources as against business income. The Ld. AR stated that, with respect to the said ground of appeal, the Ld. A.R. relied upon an order dated 26.04.2019, of a co-ordinate bench of the I.T.A.T. at Ahmedabad in the case of a group concern, namely, Gujarat Urja Vikas Nigam Ltd. bearing ITA No.3358 and 1198/Ahd/2015 and submitted that the said issue is covered in the favour of the assessee by the said order. Howev....

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.... Incomes" amounting to Rs.13352.48 lacs which is held to be business income by the I.T.A.T. and hence, the issue is decided by a coordinate bench of this I.T.A.T. in favour of the assessee and this decision though relied upon, has not been taken into consideration while passing the order in the present appeal. In order to complete the sequence and to confirm the settled position with respect to the aforesaid issue of interest income on staff loans and advances, the Ld. AR further submitted that, the revenue had preferred Tax Appeal bearing TA No.67 of 2020, before the Hon'ble Gujarat High Court, against the order of the I.T.A.T. in ITA No.3358/Ahd/2015. In the said Tax Appeal, revenue had proposed to raise question of law only with resp....

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.... "..........It was submitted that revenue receipt in the form of interest on loans and advances given to the employees, receipts of rent and electricity charges, receipts from sale of scrapes, receipts derived from sale of surplus stock and sundry receipts etc. would reduce the revenue expenditure of other related expenditures. Thus, according to Mr. Mohanty, the abovementioned receipts and related expenses are inextricably linked and is having direct and proximate connection/nexus with the Assessee's business of generation and distribution of power." The Hon'ble Orissa High Court had accepted these contentions by noting in the judgement dated 11.03.2022 as under: "12. The Assessee offered an explanation regarding inte....

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....the Act, and hence, prayed that order passed u/s.254(l) dated 24.08.2022 be recalled and rectified to the aforesaid extent in the interest of justice. 2.3 The Ld. AR further prayed that the appeal be restored and rectified to adjudicate ground no.2 raised by the assessee. 3. The Ld. DR submitted that the Tribunal has considered the decision of Hon'ble Gujarat High Court and Hon'ble Orissa High Court as well as the decision of the Tribunal. The Ld. DR further submit that in paragraph no.10 the Tribunal has given its own finding and the assessee is seeking review of the order which is not permissible under Section 254 of the Income Tax Act, 1961. 4. We have heard both the parties and perused all the material available on record. The ....