Case Law Details
Brief Facts of the Case and Question
Brief Facts: Assessee company,engaged in the business of leasing, financing and trading, filed its return of income on 10.11.2006,declaring total loss of Rs. 51,13,930/-. The Assessing Officer (AO) completed the assessment u/s.143(3) of the Act on 24.10.2008,determining the income of the assessee at Rs. 22,51,508/-
During the assessment proceeding ,the AO found that the assessee had debited an amount of Rs.98.60 lacs under the head interest to the income and expenditure account, that out of the interest of Rs.98.60 lacs it reduced interest of Rs.22.51 lacs, that net amount of Rs.76,09,404/- was added to the computation of income.
The receipt and payment of interest was an ordinary activity conducting in the normal course of business ,that the interest receipt should not considered separately ,that it made an application for registration to Reserve Bank of India(RBI)to register it as NBFC,that the net owned funds of the assessee were below the prescribed minimum level, that because of that it could not get registration as NBFC,that it continued to carry on business, that it did not accept public deposits, that since incorporation the business of the assessee remained unchanged, the assessee was maintaining two portfolio i.e. trading portfolio and investment portfolio.
Question Raised:
Please become a Premium member. If you are already a Premium member, login here to access the full content.
