Case Law Details
Shri Devasamparambil Hassainar Kutty Vs ACIT (ITAT Jaipur)
Revenue has not disputed the fact that the FDRs taken by the assessee are for the purpose of furnishing the security/guarantee to the companies those have awarded the contract to the assessee. Therefore, these FDRs were furnished as a performance guarantee by the assessee. Once the FDRs in question were obtained for the purpose of furnishing the performance guarantee for taking the contracts, then the interest on such FDRs has a direct nexus with the business activity of the assessee and consequently the same has to be treated as business income of the assessee.
FULL TEXT OF THE ITAT JUDGEMENT
These two appeals by the assessee arc directed against two separate orders of Id. CIT (Appeals), Kota dated 16.09.2011 and 25.03.2015 arising from assessment order passed under section 143(3) and penalty levied under section 271(1Xc) of the IT Act respectively for the assessment year 2009-10. In the quantum appeal, the Messee has raised the following grounds :-
“1. That on the facts, in the circumstances of the case and in law, the Id. Lower authorities grossly erred in rejecting the books of accounts of the assessee appellant u/s 115(3) of the Income-tax Act
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