2025 (5) TMI 889

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....respective assessment years. Both impugned orders are of even date i.e. 29.02.2024. Since identical issues are involved in both the appeals, these appeals are taken up together for adjudication and are decided by this common order. ITA No. 2861/Del/2024 for AY 2016-17 2. The appeal of Revenue time barred by 37 days. The Revenue has filed petition for condonation of delay in filing of appeal. After perusal of the same we are satisfied that delay in filing of appeal is not intentional but is for the reason stated in petition which appears to be bonafide. Thus, delay of 37 days in filing of appeal is condoned and appeal is admitted for adjudication on merits. 3. The Revenue in appeal has assailed the order of CIT(A) by raising followi....

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....f Belaire Condominium Association in ITA No. 655/Del/2018, decided on 25.04.2018. Hence, present appeal by the Revenue. 5. Ms. Harpreet Kaur Hansra, representing the department strongly supported findings of the AO and prayed for reversing findings of the CIT(A). The ld. DR submitted that the interest income declared by the assessee is taxable and the CIT(A) has erred in deleting the same. 6. Per contra, Shri Vaibhav Jain appearing on behalf of the assessee vehemently defended the impugned order and prayed for dismissing appeal of the Revenue. The ld. Counsel submits that the issue is squarely covered by the order of Tribunal in the case of Belaire Condominium Association (supra). The CIT(A) has followed judicial discipline and thus, ....

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....been rejected by the AO. After going through the facts of the case we are of the considered opinion that the AO has gone wrong in rejecting this contention of the assessee society. As rightly pointed out by the learned AR that the assessee society has obtained the interest bearing maintenance security called IBMS from the flat owners and such security deposit has been deposited with the Bank on which interest has been earned. Thus, there is a direct nexus in earning interest on such fixed deposit with Bank and payment of interest on the security deposit to the flat owners. The interest expenditure has been incurred wholly and exclusively for earning such interest income on Bank deposit. As per the Apartment buyers agreement there is an obli....