TaxTMI 
TaxTMI 
2025 (9) TMI 1874
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.... 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, Ahmedabad (For short "the Tribunal") in ITA No. 300/Ahd/2018 for Assessment Year 2014-2015. 3. The questions of law arising in this Appeal are as under : "i) Whether on the facts and circumstances of case and law, the Ld. Appellate Tribunal is justified in setting aside the addition of Rs. 2,45,50,000/-made by the AO on account of 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 and not in the money lending busine....
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....Further, the assessee had shown Book Profit under Section 115JB of Rs. 38,52,16,954/-. The return of income of the assessee was processed under Section 143(2) of the Act. The case of the assessee was selected for scrutiny and notice dated 04.09.2015 under Section 143(2) of the Act was issued. Thereafter notice under section 142(1) of the Act dated 19.01.2016 was issued calling for details such as audited profit and loss account, balance sheet, tax audit report etc. 5. Thereafter, Assessment Order dated 23.09.2016 was passed under Section 143(3) of the Act for Assessment Year 2014-2015 wherein, the Assessing Officer while finalising the assessment for the Assessment Year 2014-2015, treated interest income of Rs. 2,45,50,000/- from staff l....
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.... on the identical issue in case of the sister concern of the assessee- Company namely Gujarat Energy Transmission Corporation (GETCO) in ITA No. 2855/Ahd/2015 wherein by order dated 27.07.2022, the issue was sent back to the file of the Assessing Officer in view of the decision of the Hon'ble Orissa High Court in case of the Odisha Power Generation Corporation Limited to decide the issue upon examining the same with regard to the head of income considering relevant evidence in light of the observation made by the Hon'ble Orissa High Court. The Tribunal also followed the decision in case of Madhya Gujarat Vij Company Limited in ITA No. 680/Ahd/2014 dated 18.08.2023. The Tribunal therefore, sent the matter to the Assessing Officer relying upo....
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.... income from other sources instead of business income shown by the assessee. 14. On appeal, the CIT(A) as well as the Tribunal held that the interest income is required to be treated as business income instead of income from other sources. The Tribunal in its order observed as under: "10 We have heard the rival contentions and perused the material on record on this issue. The assessing Officer has treated the aforesaid income under the head income from other sources without controverting the submission of the assessee on the basis of which it was claimed that these incomes were of the nature of business income as elaborated in para seven of this order. The ld. CIT(A) has decided the issue in favour of the assessees taking ....
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....of consideration of disallowance under section 14A of the Act. The facts of the case of Gujarat Urja Vikas Nigam Ltd vs. DCIT and the facts of the case of the petitioner are identical and not different and as such, the Tribunal could not have relied upon the decision of Orissa High Court while distinguishing the facts of the case of the petitioner by ignoring the decision of the Jurisdictional High Court. More particularly, when the CIT and the Tribunal in case of the Guiarat Urja Vikas Nigam Ltd Vs. DCIT have held that interest income on staff loans is required to be treated as 'business income' instead of 'income from other sources' which is confirmed by this court in the aforesaid Tax Appeal. 9. In case of Gujara....