TMI Blog2010 (8) TMI 995X X X X Extracts X X X X X X X X Extracts X X X X ..... sable as income form other sources or as income from business. It was submitted that similar issue was there before the A.O. in earlier years and in all the earlier years, interest income was assessed by the A.O. under the head income from business except in Assessment Year 1995-96. It was submitted that in this year also, this issue was decided by CIT(A) in favour of the assessee and no appeal is filed by the revenue. It is also submitted that relevant assessment order for all the earlier years i.e. Assessment Years 1995-96 to Assessment Year 2003-04 are available in the Paper Book on pages 72-82 and 89-98. It is also submitted that the order of Ld. CIT(A) for the Assessment Year 1995-96 is also available on pages 83-88 of the Paper Book. It was his submission that in view of these facts and in view of the principle of consistency, the interest income in the present year should also be assessed as income from business . Reliance was placed on the following judicial pronouncements: (a) CIT Vs J K Charitable Trust 308 ITR 161(S.C.) (b) Radhasoamy Satsang Vs CIT 193 ITR 321 (S.C.) (c) CIT Vs Neo Poly Pack (P) Ltd. 245 ITR 492 (Del.) (d) 249 ITR 219 (S.C.) CIT V Sati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the sake of consistency, the same view should continue to prevail for subsequent years unless there is material change in the facts. In that case, it is noted by the Hon'ble High Court of Delhi that there was no single distinguishing feature permitting a different view. But in the present case, it is pointed out by the Ld. D.R. that in all the earlier years, there was business income of the assessee and hence expenses were allowable in full as claimed by the assessee against such business income and hence it was not making any difference as to whether the interest income is assessed as income from business or as income from other sources. In this regard, our attention was drawn by him to the order of Ld. CIT(A) in Assessment Year 1995-96. Our attention was also drawn to Para 5 of the order of Ld. CIT(A) in that year wherein it has been observed by the Ld. CIT(A) that this treatment will not make any difference in the profit/loss. It is submitted that up to Assessment Year 2002-03, the assessee was having business income apart form interest income and lease rent from factory land. Regarding the assessment order for the Assessment Year 2003-04, it was submitted by the Ld. D.R. th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case are that the assessee has earned income form lease rent of ₹ 10 lacs and interest income was received by the assessee of ₹ 8.85 lacs total ₹ 18.85 lacs. Against these two incomes of ₹ 18.85 lacs, the assessee has claimed deduction on account of various expenses to the extent of ₹ 27,40,113/- and in this manner, the assessee filed return of income declaring net loss of ₹ 8.57 lacs. The A.O. has disallowed the claim of the assessee regarding deduction on account of these expenses and the income of the assessee was assessed at ₹ 18.85 lacs under the head income from other sources . Being aggrieved, the assessee carried the mater in appeal before the Ld. CIT(A) but without success and now, the assessee is in further appeal before us. 4.2 It is submitted by the Ld. A.R. that till 2002-03, the assessee was having business income on account of business of trading in vaccine. It is submitted that for Assessment Year 2003-04, there was temporary lull in this business of the assessee but the business was not discontinued and hence, deduction should be allowed to the assessee on account of expense incurred for continuing the business e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd other petty expenses. Out of these expenses, to what extent, these were incurred for maintaining the establishment of the assessee company and to comply with statutory obligation has to be found out and because this aspect was never examined by the authorities below, we feel it just and proper that this issue should go back to the file of the A.O. for a fresh decision in the light of the judgment of Hon'ble High Court of Calcutta (supra). While deciding the issue afresh, the A.O. should also keep in mind the two judgments of Hon ble Allahabad High Court cited by the Ld. D.R. This aspect should also be kept in mind by the A.O. that whether the business of the assessee regarding trading in vaccine was facing temporary lull in the present year or was closed down. If it is found that there was only temporary lull in the trading business and it was continued in the subsequent year, this aspect should also be kept in mind while deciding the allowability of various expenses claimed by the assessee. With these observations, we set aside the order of Ld .CIT(A) on this issue and restore the matter back to the file of the A.O. for a fresh decision after providing adequate opportunity ..... X X X X Extracts X X X X X X X X Extracts X X X X
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