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TMI Blog2013 (8) TMI 1020X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee as 'income from Profits & Gains of Business or Profession' as against 'income from other sources' held by the AO, without appreciating the fact that business of the assessee was of investment & trading and further the assessee is not an NBFC as such giving of loans and advances to other parties cannot be considered as business activity. 2. Whether the CIT (A) was right in considering the disallowance u/s 14A without excluding those assets from the total assets, in respect of whom interest directly relatable has already been excluded. 3. Whether on the facts and in the circumstances of the case, the Ld CIT (A) was correct in holding that disallowance out of administrative expenses u/s 14A be restricted to Rs. 4,04,568/- as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, the ao treated the 'interest income' of Rs. 1,25,22,877/- earned during the year as 'income from other sources.' Aggrieved with the above disallowances made by the AO, assessee filed an appeal before the first appellate authority. 4. During the proceedings before the first appellate authority, after considering the submissions made by the assessee, CIT (A) partly allowed the appeal of the assessee. We shall take up the issue relating to taxing the interest income u/h income from other sources. In appeal before the CIT(A), assessee demonstrate the book entries, object clause of the MOA and relied on various binding judgments. Therefore, CIT (A) allowed the claim of the assessee by holding as under: "I have considered the above fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ently, the interest earned on money lending operation of Rs. 1,25,22,877/- arose from a systematic and organized activity carried on with a motive of profit and hence ought to be taxed under the head "profits and gains of business of profession'. Ground no.3 is, therefore, allowed." 4.1. Aggrieved with the said decision of CIT (A), Revenue filed the present appeal before the Tribunal by raising the ground no.1. 5. During the proceedings before us, Ld DR relied on the order of the AO. 6. Per contra, Ld Counsel for the assessee relied on the order of the CIT (A). 7. We have heard both the parties and perused the orders of the Revenue Authorities as well as the material placed before us on this issue. On perusal of the order of the CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 568/- only. Thus, the assessee computed the disallowance on accounts of clause (ii) and (iii) of Rule 8D together should be only to the tune of Rs. 16,91,489/-. CIT (A) considered the above calculations and confirmed the disallowance u/s 14A of the Act amounting to Rs. 16,91,489/-. Assessee got part relief in this regard. Aggrieved, the revenue filed the present appeal before the Tribunal by raising the ground no.2 mentioned above. 10. During the proceedings before us, Ld DR submitted that the relief granted by the CIT (A) is excess. Further, he mentioned that CIT (A) accepted the computation without due verification of the facts, correctness of the said computation of disallowance at Rs. 16,91,489/- and the applicability of the existing l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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