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2015 (6) TMI 756 - AT - Income TaxDis-allowance of Interest expenses - Disallowance on ground that RBI not recognised the assessee as NBFC - Disallowance of Carry-forward loss and depreciation - Held that:- Permission/denial by the RBI to register an assessee as NBFC does not decide the issue of carrying of business or make the business illegal. If the assessee had violated any provisions of law under the RBI Act it would be penalised by the appropriate authority. But that does not mean that the systematic organized activity carried out by the assessee for earning profit would not be treated as business. The explanation to sec.37(1) of the Act is not at all applicable to the case under consideration. Also The rule of consistency demands that for deviating from the stand taken in the earlier AY., the AO should bring on record the distinguishing feature of that particular year. We find that the AO or the FAA has not mentioned even a single line as to how the facts of the case under appeal were different from the facts of the earlier or subsequent years. We find that the disallowance of the expenses was without any basis. - Claim of interest allowed - Decided in favor of assessee. Disallowance of Carry-forward loss and depreciation - Issue squarely covered by Judgment delivered in Lavish Apartment Pvt. Ltd. [2012 (7) TMI 666 - DELHI HIGH COURT] in which it was held that income against which brought forward loss is claimed to be set off should represent business income judged by application of commercial principles and not on application of provisions of Act. - Decided in favour of assessee.
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