Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (10) TMI 107 - AT - Income TaxCharacterization of interest income - income from other sources or business income - Principle of consistency - HELD THAT:- As per the principle of consistency the department in the absence of any change in the facts could not be permitted be take inconsistent stands. Our aforesaid view is fortified by the judgment of the Hon‟ble Supreme Court in the case of Radhasoami Satsang [1991 (11) TMI 2 - SUPREME COURT] - we are unable to persuade ourselves to subscribe to the view taken by the lower authorities that the interest income was liable to be brought to tax under the head “Other sources‟. We, thus, set-aside the order of the CIT(A) and direct the A.O to assess the interest income under the head “Profits and gains of business or profession". Disallowance of the “Employee Benefit Expenses” - in absence of the requisite details which would prove to the hilt that the expenses claimed by the assessee were incurred wholly and exclusively for the purpose of its business the A.O disallowed the same - HELD THAT:- CIT-A had declined the assessee's claim for deduction of the aforesaid expenses, for the reason, that the same pertained to salaries that were paid to certain employees who were engaged in financial and marketing activities, which as were him was not the nature of business of the assessee company. At this stage, we may herein observe that as the assessee was apart from the business of rendering consultancy services and trading in cotton liner, foam insole and gel insole was also carrying on the business of finance, therefore, we are unable to persuade ourselves to subscribe to the view taken by the CIT(A) that the aforesaid employee benefit expenses could not be related to its business activities. We, thus, in the backdrop of our aforesaid deliberations vacate the disallowance of the assessee‟s claim for deduction of employee benefit expenses - we herein set-aside the order of the CIT(A) and vacate the disallowance of the employee benefit expenses. Disallowance of legal and professional fees - HELD THAT:- As we have held that the interest income was rightly reflected by the assessee as its business income, therefore, its claim for deduction of the legal and professional fees incurred in respect of the said business activity was rightly claimed by it as a deduction. Accordingly, we set-aside the order of the CIT(A) and direct the A.O to allow the assessee‟s claim for deduction of legal and professional fees.
|