2024 (7) TMI 1487

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.... dated 09.12.2019, for assessment year 2013-14. 2. The solitary issue raise in appeal by the assessee is disallowance of interest income on Inter Corporate Deposits (ICD) and Fixed Deposits (FD) as income of the assessee under the head "Profits & Gains of Business or Profession", instead the Assessing Officer (AO) has held aforesaid interest income as "Income from Other Sources". 3. Shri Satish Khosla, appearing on behalf of the assessee submits that the assessee is engaged in the business of leasing & finance. During the period relevant to assessment year under appeal, the assessee has earned interest income on Inter Corporate Deposits and Fixed Deposits. The aforesaid income was offered to tax by the assessee as Business Income. The....

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....e amortized. 4. Per contra, Shri S.L. Verma representing the Department vehemently defended the impugned order. He submitted that the assessee was not registered NBFC, hence, the assessee could not have carried out leasing & finance activity. The interest income from ICD's and FD's was thus rightly held to be income from other sources by the AO. The assessee is not carrying any business activities except for advancing of loans to the selected entities; therefore, the interest income was assessed as income from other sources. 5. We have heard the submissions made by rival sides and have examined the orders of authorities below. The primary issue in appeal is change of head of income by AO from 'Business Income' to 'Income from Other So....

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....ount. The statement of P&L account for the period ending 31.03.2013 is at page 69 of the paper book. The assessee has been consistently treating interest income on ICD's & FD's as business income and has offered the same to tax as such. The Department in the preceding assessment year i.e. AY 2012-13 and the subsequent assessment years i.e. AY 2014-15 to 2017-18 has accepted interest income as business income of the assessee. Though the assessments were framed u/s. 143(1) of the Act, it was only in AY 2015-16 that assessment was made u/s. 143(3) of the Act in the case of assessee. The assessee has placed on record copy of assessment order for AY 2015-16. Perusal of the same reveals that income offered to tax has been accepted without any add....