TaxTMI 
TaxTMI 
2026 (8) TMI 614
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....), 2014-15, raising following grounds:- "1. On the facts and circumstances of the case and in law the assessment order u/s 143(3) r.w.s 263 of the Income Tax Act is bad in law, infractious, void ab-initio and needs to be struck down. 2. On the facts and circumstances of the case and in law the Learned Assessing Officer has erred in disallowing setoff of brought forward loss of Rs. 6,31,42,956/- against interest income of similar amount. Considering the nexus, the said income which was offered as "Business Income" is unfairly assessed as "Income from Other Sources". 3. On the facts and circumstances of the case and in law, the LAO has erred in initiating penalty proceedings u/s 271AA of the Act for alleged failure ....
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....(A) took note of the order dated 25.07.2022 passed by the Coordinate Bench of the Tribunal in ITA No. 2663/Mum/2019 in the assessee's own case, whereby the revisional order passed under section 263 of the Act was set aside. The Tribunal, after examining the material on record, held that the Assessing Officer had rightly accepted the interest income as business income, having regard to the direct nexus between the interest-bearing funds and the assessee's business activities, and relying upon the judgment of the Hon'ble Bombay High Court in CIT v. Lok Holdings (2010) 189 Taxman 452 (Bom.). Following the said decision, the Ld. CIT(A) held that the interest income of Rs. 6,31,42,956/- was rightly assessable under the head "Business....
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....ification is wholly revenue-neutral, as it does not give rise to any incremental tax liability, with the total assessed income remaining identical under either head of income As stated earlier, the appellant had filed an appeal in ITAT against the order passed u/s 263 of the Act. Hon'ble ITAT, in its order dated 25/7/2022 has observed as under "7. We heard the rival submissions and perused the material on record. Prima facie the contentions of the Ld. A.R that the action of the Pr.CIT under 263 of the Act set aside the order u/s. 143(3) is bad in law as the order passed by the A.O. does not satisfy the twin conditions that (i) erroneous and (ii) prejudicial to the interest of the revenue. The contentions of the Ld. AR on t....
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...., we are of the view that the A.O. has rightly allowed the claim and disclosure of interest under income from business". In view of the findings of the Hon'ble ITAT, it is held that the interest of Rs 6,31,42,956 was rightly shown by the appellant under the head Business income. The addition of Rs 6,31,42,956/- as income from other sources is disallowed. Appellant is allowed to set off the brought forward losses against the Interest income. Ground no 2 is allowed." 3. Before us, the learned counsel for the assessee has also placed on record a copy of the aforesaid order of the Coordinate Bench in Giraffee Developers Private Limited v. Pr. CIT in ITA No. 2663/Mum/2019. 4. We have considered the rival submissions and perused th....