TMI Blog2023 (5) TMI 1323X X X X Extracts X X X X X X X X Extracts X X X X ..... gh Court and has given its view on the aspect of interest on staff loans whether business income or not. The view taken by the Tribunal is independent view after considering the decisions of the Hon ble Gujarat High Court and the Hon ble Orissa High Court and the Delhi Tribunal. The Tribunal has categorically noted the distinction on facts that in the said cases the interest earned on staff loan/advances was treated as business income noting the fact that they were given as mandatory incentives. This fact being not demonstrated in the present case, therefore, all these decisions were held to be not applicable in the present case. This cannot be termed as mistake apparent from record as the decisions cited by the Ld. AR were adjudicated and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the aforesaid order in the case of a group concern. It can be seen from the order passed in the present appeal that, the I.T.A.T. has, without considering the aforesaid order, held in para 10 that, the particular issue of interest on staff loans and advances has not been specifically decided in favour of the assessee in any of the orders relied upon by the Ld. AR. The Ld. AR submitted that, in ITA No.3358/Ahd/2015, the Assessing Officer had added the entire amount under the head Other Incomes in the Profit Loss Account of the Group Concern amounting to Rs.13352.48 lacs as income from other sources as against the claim of business income and on appeal by the assessee, the said addition was deleted by the CIT(A). Thereafter, the revenue ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omes amounting to Rs.13352.48 lacs to be business income. The Ld. AR, therefore, submitted that, the revenue has accepted the finding of fact and the position with respect to all the other components of Other Incomes to be business income, which also includes the component of interest income on staff loans and advances. The Ld. AR further submitted that, for the purpose of rectification, even without considering the aforesaid order of the Hon'ble High Court, the issue is still covered by the order of the I.T.A.T., which, with due respect, has not been considered. 2.1 On perusal of the order in the present appeal, it can be seen that, the I.T.A.T. has also stated in para 10 therein that, though the contentions of the assessee with respec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ities in the township, receipt from transit hostel, sale of scrap, insurance claim etc. The facilities were given to its employees for better conditions of employment. This was to improve the overall efficiency of the undertaking which is devoted to the single purpose of generation of power. The Court, therefore, has no difficulty in accepting the submission of the Assessee that the interest received on advances and loans given to its employees are receipts in normal course of carrying its business and should be considered as income derived from its essential business activities. ... 2.2 The Ld. AR, therefore, submitted that, the facts noted in the order passed in the present appeal are inadvertently wrongly noted as far as the judgment has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udgement of the Hon ble Orissa High Court is a mistake apparent from record within the meaning of Section 254(2) of the Act but the Tribunal has taken cognisance of the decision of Hon ble Orissa High Court and has given its view on the aspect of interest on staff loans whether business income or not. The view taken by the Tribunal is independent view after considering the decisions of the Hon ble Gujarat High Court and the Hon ble Orissa High Court and the Delhi Tribunal. The Tribunal has categorically noted the distinction on facts that in the said cases the interest earned on staff loan/advances was treated as business income noting the fact that they were given as mandatory incentives. This fact being not demonstrated in the present cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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