TMI Blog2011 (4) TMI 1407X X X X Extracts X X X X X X X X Extracts X X X X ..... ot as income of other sources as held by the AO and also that the interest income falls under Explanation (baa) of section 80HHC of the I.T. Act, 1961 and 90% thereof is to be excluded for the purpose of allowing deduction u/s. 80HHC, without properly appreciating the facts circumstances of the case as well as observations findings of the AO made in the assessment order ignoring his own findings given in various case such as Tej Enterprises, Jeoni Mandi, Agra, Tej Shoe Factory, Jeoni Mandi, Agra M/s. Divya Jewellers Pvt. Ltd., 22/77, North Vijay Nagar, colony, Agra for A.Y. 2003-04 wherein AO's action on the same issue has been confirmed by him. Grounds of cross-objection: 1. Because the learned authorities below have er ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng. Although electricity may be required for the purposes of the industrial undertaking, the deposit required for its supply is a step removed from the business of the industrial undertaking. Held accordingly, that interest derived by the industrial undertaking of the assessee on deposits made with the electricity Board for the supply of electricity for running the industrial undertaking could not be said to flow directly from the industrial undertaking itself and was not profits or gains derived by the undertaking for the purpose of the special deduction under section 80HH. 4. The immediate source of the interest income is the fixed deposits receipts. Making the fixed deposit receipts in the bank is not the business of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnot form part of his business income at all. The ground, therefore, is rejected and the addition of ₹ 1,38,000/- is confirmed. 6. The learned AR before us vehemently contended that the assessee has leased out the part of the property situated at 11, Kewal Industrial Estate, Senapati Bapat Marg, Lower Parel, Mumbai to M/s. Rosh Medical Supplies. The said property was acquired by the assessee during the financial year 2000-01 and part of it has been leased out. Since then, in the remaining part, the assessee is running his office. Our attention was drawn to the copy of the lease agreement available at page 13 to 20 of the paper book. It was pointed out that in the assessment years 2001-02, 2002-03 and 2003-04, the Assessing Office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year 2001-02 to 2003-04 also, the same rental income has been accepted under the head 'income from business', but no action u/s. 147 or u/s. 263 has been taken. There is no change in the facts of the case as compared to this year with that of subsequent or preceding assessment years and in all the preceding and subsequent assessment years, as per details filed at page 1 of the paper book, the Revenue has duly accepted the rental income under the head 'income from business'. In our opinion, the rule of consistency has to be followed. In view of this fact, we set aside the order of the CIT(A) and direct the Assessing Officer to assess the income from rent under the head 'income from business. Thus, this ground of cross ob ..... X X X X Extracts X X X X X X X X Extracts X X X X
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