Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (6) TMI 889 - ITAT MUMBAIAllowability of expenditure - proof of commencement of business - Held that:- It was noted that the issue of commencement of business was already settled by the ITAT in assessee’s own case for AY 2007-08 [2013 (1) TMI 964 - ITAT MUMBAI] where it was held that business was very much in existing and, therefore, it cannot be said that there was no business activity carried out by the assessee. If by any reason in various other proceedings, where working was in pipe line and working could not be started then also the expenses claimed on these activities are to be allowed in accordance with the business activities - thus pursuant to the direction of the ITAT, the AO has accepted the assessee’s claim of commencement of business and allowed the expenditure in relation thereto - Decided in favor of assessee. Interest from ICD amounting and Interest from debenture - assessable under the head ‘Income from other sources’ or ‘Income from business and profession’ - Held that:- This incomes has been taxed as income from other sources on the ground that this interest has been earned from surplus fund lying with the company. Similar issue was also decided against the assessee in the earlier years. No infirmity in the action of the CIT(A) in holding that this income has to be taxed as income from other sources. Disallowance of expenditure u/s 57 against the income under head income from other sources - Held that:- this ground is misplaced inasmuch as the CIT(A) has directed the AO to verify this aspect as to whether finance cost pertains to the earning of the interest income and thereafter decide the issue - hence we do not find any infirmity in the direction of the CIT(A) in this regard - thus allowed for statistical purpose. Disallowance u/s. 14A - Held that:- We find that the CIT(A) has actually remitted the issue to the file of the AO to examine certain claims of the assessee and assessee should be granted adequate opportunity of being heard - thus allowed for statistical purpose.
|