TMI Blog2018 (2) TMI 296X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal by the Revenue is arising out of the order of Commissioner of Income Tax (Appeals)-8, Mumbai, [in short CIT(A)] in appeal No. CIT(A)-8/IT-751/14-15 dated 29-03-2015. The Assessment was framed by the Deputy Commissioner of Income Tax, Circle 3(1), Mumbai (in short DCIT) for the assessment year 2012-13 order dated 17-02-2015 under section 143(3) of the Income Tax Act, 1961(hereinafter the Act ). 2. The only issue in this appeal of Revenue is against the order of CIT(A) in treating the interest earned on money lending under the head profits and gains from business or profession instead of assessed by the AO as income from other sources. For this Revenue has raised following ground No. 1: - 1. Whether on the facts and in the ci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an appeal was filed before the FIAT contesting the decision of the Ld. CIT(A) in this regard. 4. The CIT(A) relying on the earlier year orders treated the income as income from business or profession vide para 5.3.1 and 5.3.2 as under: - 5.3.1 This ground pertains to taxing the interest earned of ₹ 81.24.000/- under the head income from other sources instead of profits and gains of business or profession . I find that this has been covered in favour of the appellant by Hon ble ITAT for assessment years 2008-09, 2009-10 and 2010-11 which was followed by my predecessor in appeals for assessment years 2010-11 and 2011-12. 5.3.2 Respectfully following the decision of Hon ble ITAT, the assessing officer is directed to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 facts and submissions and the arguments made by the Ld AR of the appellant. The Object Clause permitted by the company to carry on the activity of money lending. It can be seen from the resolutions passed at the meeting held on September 3 rd , 2007 that consent of the Board of directors was obtained to borrow monies from time to time up to an amount not exceeding ₹ 200 Crs, for the purpose of the business of the company subject to interest rate not exceeding 12% per annum. A resolution was also passed by the Board of Directors to make loans from time to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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 (A) order, we are of the opinion that the CIT (A) s decision, in treating the interest income of ₹ 1,25,22,877/- earned on money lending operation as Profits Gains of Business or Profession , is reasonable and it does not call for any interference. In this regard, we have considered object clause authorizing the assessee to conduct the business of money lending and the entries in the books of accounts and the bank accounts. Accordingly, ground no.1 raised by the Revenue is dismissed . 8. Respectfully following the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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