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TMI Blog2024 (7) TMI 1487X X X X Extracts X X X X X X X X Extracts X X X X ..... 3-14. 2. The solitary issue raise in appeal by the assessee is disallowance of interest income on Inter Corporate Deposits (ICD) and Fixed Deposits (FD) as income of the assessee under the head "Profits & Gains of Business or Profession", instead the Assessing Officer (AO) has held aforesaid interest income as "Income from Other Sources". 3. Shri Satish Khosla, appearing on behalf of the assessee submits that the assessee is engaged in the business of leasing & finance. During the period relevant to assessment year under appeal, the assessee has earned interest income on Inter Corporate Deposits and Fixed Deposits. The aforesaid income was offered to tax by the assessee as Business Income. The assessee in its profit & loss account has sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resenting the Department vehemently defended the impugned order. He submitted that the assessee was not registered NBFC, hence, the assessee could not have carried out leasing & finance activity. The interest income from ICD's and FD's was thus rightly held to be income from other sources by the AO. The assessee is not carrying any business activities except for advancing of loans to the selected entities; therefore, the interest income was assessed as income from other sources. 5. We have heard the submissions made by rival sides and have examined the orders of authorities below. The primary issue in appeal is change of head of income by AO from 'Business Income' to 'Income from Other Sources'. The assessee is engaged in the business of l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.2013 is at page 69 of the paper book. The assessee has been consistently treating interest income on ICD's & FD's as business income and has offered the same to tax as such. The Department in the preceding assessment year i.e. AY 2012-13 and the subsequent assessment years i.e. AY 2014-15 to 2017-18 has accepted interest income as business income of the assessee. Though the assessments were framed u/s. 143(1) of the Act, it was only in AY 2015-16 that assessment was made u/s. 143(3) of the Act in the case of assessee. The assessee has placed on record copy of assessment order for AY 2015-16. Perusal of the same reveals that income offered to tax has been accepted without any addition. 7. In the impugned assessment year AO has changed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hs paid towards ROC fees for share application money on 09.03.2011. The assessee has amortized aforesaid expenditure over the period of five years. The first year of claim was AY 2012-13, this is a second year of claim of amortization of expenditure Rs. 1.56 lakh. The AO disallowed assessee's claim of amortization of expenses in the impugned assessment year only. In the subsequent assessment years the Department has again accepted amortization of expenditure. We find no valid reason for disallowing amortization of expenditure in the impugned assessment year when the same has been allowed in the preceding and succeeding assessment years. The AO is directed to allow amortization of preliminary expenses in the impugned assessment year as well. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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