Case Law Details
Sunny Rock Estates & Developers Pvt. Ltd Vs DCIT (ITAT Kolkata)
Income earned during the year by the assessee is on inter-corporate deposit with Williamson Services Ltd. as interest income. We also note that assessee has consistently reported its earning of interest income from ICDs, as business income which has been accepted by the Department as demonstrated by the Ld. Counsel from the records for AY 2012-13 and AY 2014-15. These facts have not been controverted by the Ld. Sr. DR by bringing any positive material on record. Considering the facts, submissions made by the Ld. Counsel and the judicial precedent referred in the case of Chhangalal Khimji & Co. Pvt. Ltd. (supra), we are inclined to accept the contentions of the assessee to hold the interest income of the assessee as business income. Ld. AO is accordingly, directed to treat the same as business income.
FULL TEXT OF THE ORDER OF ITAT KOLKATAT
This appeal by the assessee is directed against the order of Ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi vide Order No.ITBA/NFAC/S/250/2021-22/1037406250(1) dated 01.12.2021 for A.Y. 2013-14 arising out of order passed u/s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) by DCIT, Circle-1(2), Kolkata dated 28.12.2015.
2. In the present appeal, essentially there are two issues involved – one relating to treatment of interest income of Rs.89,73,695/- as income from other sources as against business income claimed by the assessee and another relating to disallowance of interest expenses of Rs.41,06,890/- which according to the Ld. AO had to be capitalized towards project development. For these two issues, assessee has taken as many as nine grounds which are not reproduced for the sake of brevity.
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