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2012 (9) TMI 1056 - AT - Income TaxAllowing business expenses - there was no business in existence during the year as the assessee was debarred by SEBI to carry out business activities Tribunal rendered on similar issues in the case of sister concerns of the assessee company. As regards the issue involved in ground No.1 relating to existence of business, he has relied on the decision of the Tribunal in the case of M/s KNP Securities (P) Ltd. (2009 (5) TMI 840 - ITAT MUMBAI) to hold that the business of the assessee company was neither discontinued nor closed down and, therefore, the expenses incurred in relation to the said business were allowable as deduction. Head of income - under which head interest and miscellaneous income is assessable to tax in the hands of the assessee? - Held that:- As the business had not closed and the claim of expenditure had to be allowed. Respectfully following the said decision of the tribunal we hold that the business of the assessee had not been closed in the relevant year and therefore FDRs had to be treated as pledged in connection with the business which was in existence and therefore the interest income had to be treated as incidental business income.
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