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2017 (6) TMI 237 - ITAT MUMBAIAssessment of interest income - income from profits and gains of business or profession or income from other sources - Held that:- As in immediately preceding year i.e. AY 2009-10, the Tribunal in Assessee’s own case [2015 (5) TMI 305 - ITAT MUMBAI ] on the very same issue dismissed Revenue’s appeal by holding that the interest income earned by assessee on the security deposits with the bank as per the common loan agreement is to be assessed as income from profits and gains of business or profession and not under the head income from other sources.The facts and circumstances of the case are exactly identical in this year also and interest income earned by the assessee is on the same security deposits with the bank as per the common loan agreement in earlier years - Decided against revenue. Disallowance of claim of depreciation on Toll Road - Held that:- As relying on Assessee’s own case [2015 (5) TMI 305 - ITAT MUMBAI ] the assessee is entitled to the claim of depreciation on the road to collect toll being an intangible asset falling within the purview of section 32(1) (ii) of the Act. Assessment of notional interest on the delayed payment of grants - Held that:- Hon’ble Delhi High Court in the case of CIT vs. Asian Hotels Ltd. (2007 (12) TMI 274 - DELHI HIGH COURT) has held considering the provisions of section 28 (iv) the question of any notional interest on an interest free deposits being added to the interest of the assessee on the basis that it may have earned by assessee if placed in a fixed deposit, does not arise. The provisions of section 23(1)(a) of the Act, which is for determining the income from house property and concerns determination of annual letting value of such property. This contemplates the possible rent that the property might fetch but certainly not the interest in the fixed deposit that may be placed by the tenant with the landlord in connection with the letting out of such property. The notional interest was not assessable either as business income or as income from house property. Thus the lower authorities in the present case erred in assessing the notional interest on the delayed payment of O&M grants received by assessee. We delete the addition and allow this issue of assessee’s appeal.
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