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2013 (11) TMI 217 - ITAT DELHIClassification of head of income, whether the interest income falls under the head ‘Business income’ or ‘Income from other sources’ – Held that:- Income was earned out of surplus funds advanced by the assessee to its sister concern which was not a business activity of the assessee and neither the Ld AR could prove that advances were given for business purposes – However, even if the income is treated under the head income from other sources even then the total income of the assessee would be computed after setting off losses under other sources including under the head profits from business. Addition on account of inadmissible expenses – Held that:- Expenses were incurred against NIL business receipts. The revenue has also not brought anything before us in support of the claim that expenses were not business expenses. The revenue’s only contention is that expenses should have been capitalized as work in progress whereas in our opinion the expenses of rent, electricity, printing, telephone conveyance, security expenses, filing fee etc. Are common expenses which are required to run a business – Decided against the Revenue. Change in method of accounting adopted u/s 145 of the Income Tax Act – Held that:- The Assessing Officer cannot force assessee to change the method of accounting specially in a case where in earlier years the method employed by assessee was accepted by Department – Decided against the Revenue.
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