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2019 (2) TMI 2020 - BOMBAY HIGH COURTRevision u/s 263 by CIT - income generated out of the assessee's investment funds in fixed deposits - As per CIT AO had not undertaken proper inquiries and had not examined the issue whether the interest income was to be assessed under the head “Income from business income or of other source” - Tribunal by the impugned judgment allowed the assesssee's appeal and set aside the order of the Commissioner of Income Tax - HELD THAT:- Tribunal noted that the assessee was previously engaged in the business primary dealing of securities. The assessee was in the process of switching over to the new business of stock broking. The assessee had liquidated its investment from the past business and parked the surplus fund in fixed deposit awaiting commencement of activities in the new business. It was on account of such facts that the assessee had claimed the interest income as arising out of its business activity. The Tribunal was of the opinion that this was entirely plausible view. We see no reason to interfere with the view of the Tribunal. The question whether the income should be taxed as business income or as arising from the other source was a debatable issue. The Assessing Officer has taken a plausible view. More importantly, if the Commissioner was of the opinion that on the available facts from record it could be conclusively held that income arose from other sources, he could and ought to have so held in the order of revision. There was simply no necessity to remand the proceedings to the Assessing Officer when no further inquiries were called for or directed. - Decided in favour of assessee.
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