TMI Blog2018 (5) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... ome from other sources -Held that:- Having money lending licence is not a precondition for having business income from money lending activity. Merely because there is no money lending licence, interest income cannot be treated as income from other sources. Nothing much would turn on that fact in deciding this issue. Following the principle of consistency, 1 hold that interest received by the appellant on loans and advances given to various persons is business income. The fact that there was no mention of money lending activity as business in Form 3CD also cannot be a ground to hold otherwise when interest income was assessed as business income in the past. - ITA.No. 1513 & 1514/MUM/2016 And TA.No.1578/MUM/2016 - - - Dated:- 23-4-2018 - S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eet Investments Private Limited (supra), we direct the Assessing Officer to recompute the disallowance under Rule 8D2(iii) keeping in view the decision of the Special Bench wherein it has been held that only dividend yielding investments shall be considered for the purpose of computing the disallowance under Rule 8D2(iii). This ground is partly allowed. 6. Coming to the Revenue s appeal, the only issue is whether the interest income received by the assessee should be assessed as business income or income from other sources. 7. The assessee is an individual also a member of Mumbai stock exchange and doing business of investments and share broking. During the Assessment Year under consideration the assessee received interest on loans gi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Ld.CIT(A) with reference to the submissions and averments of the Assessing Officer and taking note of the fact that the interest income received by the assessee was assessed under the head income of business in the past Assessment Years i.e. 2007-08, 2008-09 and 2010-11, the Ld.CIT(A) concluded that the interest income received by the assessee is assessable under the head income of business following the principle of consistence, observing as under: 7.3 I have carefully considered the facts of the case, the AO' stand and the appellant's submissions. 1 find that in A.Y. 2007-08, A.Y.2008-09 and AY. 2010-11 the interest received was assessed as business income in assessment orders u/s 143(3). The principle of consisten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cense to conduct this business, does not mean that the claim of bad debts should be denied. The Commissioner has in relation this claim held in his order at Paragraph 4.2 that the Tribunal s order in the case of B.N. Khandelwal v. ITO [2007] 16 SOT 343 (Mum). Would assist the assessee inasmuch as the amount is lent in ordinary course of money lending business. It was written off after making efforts to recover. The effort was unsuccessful. In such circumstances, the Tribunal did of the Act commit any error in reaffirming the conclusion of the commissioner of Income Tax (appeals) and which is to be found in paragraph o. 4.2 of the Commissioner s order. The present appeal also is continuation of the attempt by the Revenue to question such fin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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