TMI Blog2015 (7) TMI 942X X X X Extracts X X X X X X X X Extracts X X X X ..... om other sources. The Ld. AO, while reopening the assessment, has also considered the said interest on bank deposits and interest with IT refund and has formed the opinion that the said income was assessable under the head “Income from other sources”. Since this fact of assessment of above income under the wrong head has also been admitted by the assessee, hence the order of the AO forming his opinion for reopening the assessment particularly in relation to the above said interest income on bank deposits and IT refund can be held to be justified. - Matter remanded back - Decided partly in favour of assessee. - ITA No.1489/M/2013 - - - Dated:- 6-2-2015 - Shri R.C. Sharma, And Shri Sanjay Garg,JJ. For the Appellant : Shri Jitendra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said grounds of appeal. Ground No.1 3. Ground No.1 is relating to the reopening of assessment under section 147 of the Income Tax Act. The original assessment in this case was completed under section 143(3) of the Act. Later on the Assessing Officer (hereinafter referred to as the AO) found that the following income of the assessee were assessable under the head Income from other sources . 1. Interest on securities ₹ 159500/- 2. Interest on bank deposits ₹ 1150/- 3. Interest on interest corporate deposits ₹ 659331/- 4. Interest on income tax refund ₹ 4580/- 3.1 The AO observed that the assessee had been wrongly allowed the set off of the above income against the brought forward business loss. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered the submissions of the Ld. Representatives of both the parties. Though it is the contention of the assessee that in the past the interest income on inter corporate deposits has been assessed as business income on the ground that the assessee has been engaged in the business of financing, bill discounting and inter corporate deposits, however, we find that the assessee in its written submissions dated 07.10.11 made to the Income Tax Officer has fairly admitted that the interest on fixed deposit with bank of ₹ 1,150/- and interest on IT refund of ₹ 4,580/- had inadvertently remained to be offered as income from other sources. The Ld. AO, while reopening the assessment, has also considered the said interest on bank depo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oceeds of factory premises in section 54EC Bonds and not in inter corporate deposits. It has also been submitted that the object clause of the assessee s Memorandum of Association also authorizes the assessee to carry the said business of financing and inter corporate deposits. On the other hand, the Ld. D.R. has relied upon the order of the Ld. CIT(A). 7. After considering the submissions of the Ld. Representatives of the parties, we are of the view that if the assessee is engaged in the business of financing and investment, then the income from inter corporate deposits is to be assessed as business income. Moreover, it has been claimed that in the past the said income of the assessee has consistently been assessed as business income. H ..... X X X X Extracts X X X X X X X X Extracts X X X X
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