Gujarat Urja Vikas Nigam Ltd Vs ACIT (ITAT Ahmedabad)
ITAT Ahmedabad held that interest income and miscellaneous income earned by the assessee are directly related to the business of the assessee and assessable as “business income” only and not as “income from other sources”.
Facts-
The assessee is a Public Sector Undertaking engaged in purchase, sale and distribution of electricity. For the Assessment Year 2017-18, the assessee filed its Return of Income on 18-10-2017 declaring total income of Rs.90,92,02,810/- after setting off Brought Forward Losses of Rs.75,45,22,135/-. The assessee shown book profit u/s. 115JB of Rs.165,54,21,963/-. The return was taken up for scrutiny assessment and various disallowances made by the Assessing Officer. CIT(A) partly allowed the appeal. Being aggrieved, both revenue and assessee has preferred the present appeal.
Conclusion-
Held that the interest income and miscellaneous income earned by the assessee are directly related to the business of the assessee and assessable as “business income” only and not as “income from other sources”.
Held that respectfully following the Jurisdictional High Court judgment in assessee’s own case, the ground raised by the Revenue to include the disallowance u/s. 14A for the purpose of computation of book profit u/s. 115JB of the Act is hereby deleted.
