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TMI Blog2025 (5) TMI 889X X X X Extracts X X X X X X X X Extracts X X X X ..... orders are of even date i.e. 29.02.2024. Since identical issues are involved in both the appeals, these appeals are taken up together for adjudication and are decided by this common order. ITA No. 2861/Del/2024 for AY 2016-17 2. The appeal of Revenue time barred by 37 days. The Revenue has filed petition for condonation of delay in filing of appeal. After perusal of the same we are satisfied that delay in filing of appeal is not intentional but is for the reason stated in petition which appears to be bonafide. Thus, delay of 37 days in filing of appeal is condoned and appeal is admitted for adjudication on merits. 3. The Revenue in appeal has assailed the order of CIT(A) by raising following grounds:- "2. The Ld. CIT(A) has erred in d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on 25.04.2018. Hence, present appeal by the Revenue. 5. Ms. Harpreet Kaur Hansra, representing the department strongly supported findings of the AO and prayed for reversing findings of the CIT(A). The ld. DR submitted that the interest income declared by the assessee is taxable and the CIT(A) has erred in deleting the same. 6. Per contra, Shri Vaibhav Jain appearing on behalf of the assessee vehemently defended the impugned order and prayed for dismissing appeal of the Revenue. The ld. Counsel submits that the issue is squarely covered by the order of Tribunal in the case of Belaire Condominium Association (supra). The CIT(A) has followed judicial discipline and thus, allowed relief to the assessee after considering decision of the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the considered opinion that the AO has gone wrong in rejecting this contention of the assessee society. As rightly pointed out by the learned AR that the assessee society has obtained the interest bearing maintenance security called IBMS from the flat owners and such security deposit has been deposited with the Bank on which interest has been earned. Thus, there is a direct nexus in earning interest on such fixed deposit with Bank and payment of interest on the security deposit to the flat owners. The interest expenditure has been incurred wholly and exclusively for earning such interest income on Bank deposit. As per the Apartment buyers agreement there is an obligation on every buyer to make security deposit and there is corresponding obl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, hence, dismissed. 9. In the result, appeal of the Revenue for AY 2016-17 is dismissed. ITA No. 2855/Del/2024 for AY 2017-18 10. The Revenue has assailed the findings of CIT(A) in impugned assessment year on identical issue as was raised in appeal for AY 2016-17, that is with regard to deleting of interest income Rs. 2,87,89,936/-. Both sides unanimously stated that the issue raised in present appeal is identical to the one raised in AY 2016-17, hence, the submissions made for AY 2016-17 would equally hold good for AY 2017-18. 11. Since, the issue is identical in both appeals, the findings given by us while adjudicating appeal of Revenue for AY 2016-17 would mutatis mutandis apply to present appeal as well as. For parity of reasons, a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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