TaxTMI 
TaxTMI 
2025 (6) TMI 239
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....nt. 2. This Appeal is filed under Section 260A of the Income Tax Act, 1961 (for short 'the Act') by the appellant-Revenue arising out of the order dated 19th September, 2023 passed by the Income Tax Appellate Tribunal in ITA No.324/Ahd/2015 for Assessment Year 2011-12. The questions of law arising in this Appeal are re-framed as under : (i) Whether ITAT is justified in setting aside the addition of INR 1,03,66,000/- treating interest income earned from loans to staff and other loans as "Income from other sources" without appreciating the fact that the assessee is in the business of distribution of electricity? (ii) Whether ITAT has erred in treating income from interest of INR 79,90,000/- earned from supplier/other part....
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....ome from business or profession as the respondent-assessee was engaged in the business of distribution of electricity and the said income was not generated from day to day business of the assessee-Company. 3.3. Being aggrieved, the assessee preferred an Appeal before the CIT (Appeals) who confirmed the aforesaid additions made by the Assessing Officer on the ground that interest income cannot be said to be arising from the business of the assessee as the assessee is not engaged in business of money lending and held that the Assessing Officer rightly treated the same as income from other sources. Being aggrieved, the assessee preferred an Appeal before the Tribunal. 3.4. The Tribunal followed the decision of the Co-ordinate Bench on th....
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....ication No.20400 of 2023 and other allied matters while considering the order passed by the Tribunal rejecting the application for rectification of mistake filed by the petitioner. Learned advocate Mr. Manish Shah therefore submitted that following the decision of this Court, this Appeal is liable to be dismissed. 6. Heard learned advocates for both the sides. In case of Gujarat Urja Vikas Nigam Limited (Supra), this Court has held as under : "13. With regard to question No.2[d], the Assessing Officer noticed that as per Schedule 14, the assessee has shown other income consisting of interest on loan and advances, incentives from CPSU, etc. The Assessing Officer was of the view that this income was to be assessed as income from o....
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....ion of law much less substantial question of law arises. Therefore, appeal stands dismissed qua question No.2[d]." 7. Considering the above decision, while rendering the oral judgment in Special Civil Application No.20400 of 2023 in case of Uttar Gujarat Vij Co. Ltd Versus The Income Tax Officer, Ward 2(1)(4), it was observed as under : "8. Having heard learned advocates for the parties it appears that it is not in dispute that the petitioner has relied upon the decision of this court in case of Gujarat Urja Vikas Nigam Itd vs. DCIT in Tax Appeal No. 63/2020 wherein, the Tax Appeal was preferred by the Revenue on the aspect as to whether interest received on staff loan is business income or not for the purpose of consideration o....