Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 2058 - HC - Income TaxTreatment to interest income - business income or income from other sources - ITAT allowing the B/F loss to be set off against the income which was not allowed by the AO - Held that:- even a single or isolated transaction can constitute business if it bears a clear indicia of trade, although the activity would normally be systematic and organized characterized by a course of dealing. Identical ratio was laid down by the Hon'ble Madras High Court in the case of CIT vs. R.M. Meenakshi Sundram (1994 (4) TMI 34 - MADRAS High Court). It is not necessary that in every situation the past history has to be seen because even for a past history there is a starting point. It is an admitted fact that the other members of the family are also doing the same systematic and organized activity of earning such interest income, therefore, there is no reason to deny the benefit, if any, to the present assessee. Since we have discussed the issue in detail in the preceding paras of this order, this ground of the revenue is also having no merit, therefore, dismissed Once it has been held that the income of the assessee was to be assessed under the head income from business or profession, the assessee was thus entitled to set off against carry forward losses. The Tribunal was justified in allowing the same. Even for the subsequent assessment year i.e. 2005-06, the interest income was accepted as income from business or profession. Learned counsel for the appellant has not been able to show any illegality or perversity in the findings recorded by the Tribunal. - Decided against revenue.
|