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2022 (3) TMI 1239 - AT - Income TaxCorrect head of income - treatment to the interest income being interest eared on fixed deposits as ‘Business Income’ or ‘Income from Other Sources’.” - HELD THAT:- We have perused the findings returned by the Ld. CIT(A) who has decided the issue in favour of the assessee by following the order passed by the Tribunal in assessee’s group company cases passed [2015 (12) TMI 1649 - ITAT MUMBAI] which are based upon the decision rendered by Hon’ble Karnataka High Court in case of Swish Chandra & Co. [1998 (7) TMI 73 - KARNATAKA HIGH COURT] and decision rendered by Hon’ble Bombay High Court in case of CIT Vs. Lok Holdings [2008 (1) TMI 365 - BOMBAY HIGH COURT] When it is settled principle of law that in cases where assessee is engaged in development of properties, advances taken by it from customer to purchase the flats was deposited with the banks in the course of business, the interest income earned there from is to be treated as “business income” and not as “income from other sources”. So in these circumstances, we find no illegality or perversity in the findings returned by the Ld. CIT(A) hence Ground No.1 Claim of business loss on account of depreciation and amortization of amalgamation expenses which was capitalized to work in progress - CIT(A) has allowed the business loss claimed by the assessee on account of depreciation and amortization of amalgamation expenses, which was capitalized to work in progress as the assessee was having only one contract - HELD THAT: When this issue has already been decided in favour of the assessee by the Tribunal in an appeal filed against the assessment order passed under section 143(3) of the Act, the same was liable to be decided in favour of the assessee when again disallowed during the assessment framed under section 153C read with section 143(3) - when the assessee has been consistently following the particular accounting method, business loss claimed by the assessee on account of depreciation and amortization of amalgamation expenses is liable to be allowed. A particular accounting method consistently being followed by the assessee cannot be disturbed by the AO in treating the impugned expenses as part of work in progress and as such when the claim of the assessee is in accordance with the method of accounting consistently being followed the claim of the assessee is allowable. Moreover, this issue has already been decided by the Tribunal in favour of the assessee during the appellate proceedings initiated on the basis of assessment framed under section 143(3) - Decided against revenue.
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