Sponsored
    Follow Us:

Case Law Details

Case Name : DCIT Vs Hero Fin Corp Ltd. (ITAT Delhi)
Appeal Number : ITA No. 4806/Del/2017
Date of Judgement/Order : 05/03/2021
Related Assessment Year : 2013-14
Become a Premium member to Download. If you are already a Premium member, Login here to access.
Sponsored

DCIT Vs Hero Fin Corp Ltd. (ITAT Delhi)

The assessee is earning lease rent from the lease charges of cars, plant & machinery given on hire to M/s Hero MotoCorp. The AO held that the income of the hire charges are to be chargeable under the head “income from other sources” but not under the head “business and profession”. The AO held that the assessee is NBFC and doing finance activities and earning of lease rent from plant & machinery is not the business of the assessee company.

The ld. CIT (A) deleted the addition holding that the revenue having accepted all along that the lease rental income earned as business income cannot suddenly change the tract and consider the business income as income from other sources. The ld. CIT (A) held that it becomes all the more relevant when the exercise to changes the heads business or other sources is purely academic having no impact on the revenue. The Assessing Officer has not brought out any new facts or circumstantial to justify the change in opinion regarding head of Therefore, disallowance made by the AO in the impugned order is deleted.

 Having gone through the rationale given by the Assessing Officer which is not the correct position of the law, the order of the ld. CIT (A) giving relief based on the stand of the revenue for the earlier years and on going through the provisions of Section 71, we hold that such change of head of income is an infructuous academic exercise and accordingly the appeal filed by the revenue is hereby dismissed.

FULL TEXT OF THE ITAT JUDGEMENT

Please become a Premium member. If you are already a Premium member, login here to access the full content.

Sponsored

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Leave a Comment

Your email address will not be published. Required fields are marked *

Sponsored
Sponsored
Search Post by Date
July 2024
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
293031