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2018 (4) TMI 559 - ITAT CHENNAIInterest income assessment - whether to be considered under the head business income and allowing the expenditure exclusively incurred for earning such income? - Held that:- Non charging of interest from few persons to whom assessee had advanced loans would not be a sufficient enough a reason to hold that assessee was not doing a finance and investments business. Assessment order for assessment year 2009-2010 placed by the assessee clearly show that AO had accepted the business of the assessee as one of finance and investment. DR could not point out any difference in facts or any change of facts from what existed for assessment year 2009-2010, vis-a-vis the impugned assessment year. Commissioner of Income Tax (Appeals) was justified in taking a view that interest income of the assessee had to be considered under the head business income and allowing the expenditure exclusively incurred for earning such income. - Decided against revenue Dividend income received by Minor V. Prateek and Minor V.Palak - exemption u/s.10(34) r.w.s. 115O allowed - Held that:- DR fairly admitted that assessee had produced records which demonstrated payment of dividend distribution tax by the concerned companies from which dividends were received by Minor V. Prateek and Minor V.Palak. In our opinion, dividend distribution tax under Section 115O of the Act, having been paid by the companies concerned, ld. Commissioner of Income Tax (Appeals) was justified in holding that dividend income received by Minor V. Prateek and Minor V.Palak were exempt u/s.10(34) of the Act - Decided against revenue Addition claimed by the assessee u/s.35AC - claim of deduction u/s.35AC is not an allowable expenditure as the assessee has no business income - Held that:- A reading of the above ground clearly show that it is raised as corollary to ground No.2 regarding treatment of the interest income earned by the assessee. We have already upheld the order of the ld. Commissioner of Income Tax (Appeals) that interest received by the assessee was rightly treated as business income of the assessee. Disallowance of unrealized rent while computing its income from house property for a warehouse premise - Held that:- We find that none of the lower authorities had examined the issue based on the Section and Rule mentioned supra. Issue in our opinion requires a revisit by the ld. Assessing Officer. We therefore set aside the orders of the lower authorities and remit this issue back to the file of the ld. Assessing Officer for consideration afresh.
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