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TMI Blog2015 (12) TMI 1018X X X X Extracts X X X X X X X X Extracts X X X X ..... d disposed of in this consolidated order. Appeal wise adjudication is given in the following paragraphs of this order. ITA No.1983/M/2012 (By Revenue) 2. This appeal filed by the Revenue on 10.3.2011 is against the order of the CIT (A)-5, Mumbai dated 22.12.2010. In this appeal, Revenue raised the following grounds and the same read as under: "1. The order of the CIT (A) is opposed to law and facts of the case. 2. On the facts and in the circumstances of the case and in law, the Ld CIT (A) erred in holding that interest income Rs. 351.91 lakhs is assessable under the head 'income from business / profession' without appreciating that interest earned from the deposits is assessable under section 56 under the head 'income from other sourc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 154 of the Act. Meanwhile, notice u/s 148 of the Act was issued and served on the assessee to reopen the impugned assessment. Accordingly, the re-assessment order was passed u/s 143(3) r.w.s 147 of the Act on 25.3.2004 and the assessed income was determined at Rs. 1,07,74,26,410/- after treating the said interest income amounting to Rs. 3,51,91,070/- under the head 'income from other sources'. Aggrieved with the said decision of the AO, assessee carried the matter in appeal before the first appellate authority. 4. During the proceedings before the first appellate authority, after considering the submissions of the assessee, CIT (A) following the orders of his predecessors for the earlier assessment years 1998-99 to 2001-2002, wherein on id ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order of the Tribunal in the case of ACIT vs. M/s. Piem Hotels Ltd (which is the assessee's sister concern) in appeal ITA Nos.7173 & 7174/M/2003 and others for the AYs 1998-99 and 1999-2000, dated 12.5.2008, a copy of which is placed on record. Bringing our attention to the said Tribunal's order (supra), Ld Counsel for the assessee mentioned that an identical issue was decided by the Tribunal in favour of the assessee vide para 23 of its order. Before us, it is the prayer of the Ld Counsel that considering the commonality of the issue involved in the present appeal and that of the issue adjudicated by the Tribunal vide its order dated 12.5.2008 (supra), the CIT (A)'s order should be upheld. 7. We have heard both the parties and peruse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplication of labour and skill. However, in our opinion, in the modern days of advanced technology, business can be conducted through phone, fax or email etc. Further, in our opinion it is not necessary that for considering an income as business, substantial, systematic organised and continuous activity involving application of labour and skill is always required. It is also necessary that there shall always be written agreement, in our opinion, is sufficient for giving a transaction the nature of business. From the various details filed by the assessee during the course of assessment proceedings as well as appeal proceedings, we are of the opinion that the assessee has earned the same in the normal course of conduct of business. Similarly, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITAT, Mumbai in ITA No.5192 to 5195/Mum/2006 for AYs 1989-90; 1990-91; 1992-93 and 1993-94 in appellant's own case has endorsed lower rate of interest charged by the appellant on the ground that the amount in question given to subsidiary companies was for the purpose of business expediency. I also find that this proposition is in sync with the formula and the method of computation of deduction spelt out in sec. 80HHD. In line with the foregoing, the action of the Assessing Officer in taxing the receipts as income from other sources is not justified and the same has to be taxed under the head 'business income'. Accordingly, the ground of appeal is allowed." 9. From the above settled position of the issue and also respectfully following th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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