The Ahmedabad income tax appellate tribunal (ITAT) Bench, arranging the appeals furnished via both the taxpayer and the revenue, ruled that the interest income from the staff loans and advances along with the fixed deposits and the advances would be treated as the income of the business.
The tribunal sees that when seven appeals out of which four had been filed by the taxpayer, three by the revenue related to that the taxpayer and the engaging common problems with respect to distinct orders issued by the CIT(A)-III/II, Vadodara for distinct assessment years, were furnished before it.
An appeal has been filed because the Commissioner of Income Tax (Appeals), (CIT(A)), would have made mistake in law, on the grounds of confirming the additions of Rs.24,65,05,100 on account of Capital Grants and Subsidies and Consumers’ Contribution as per which the appellant is needed to transfer 15% of the total Grants/subsidies/ consumer contribution obtained in the year opposed to 10% provided, the submission of the petitioner that the error in law and on the basis was performed via CIT(A) through his confirmation incurred on the additions, towards the interest income through the staff loans and advances, mentioning it to be income from other Sources other than the Business Income.
Listening to the contentions of the rival, perused the materials on record, and sustaining its observations that the income of the interest via staff loans, advances including FDs and advances would be treated as the business income, the Tribunal refused the petition of the revenue according to the below-mentioned observations:
“As regards Ground No. 2.1 and 2.2 of Revenue’s appeal, it’s identical to Ground No. 2.1 and 2.2 of Revenue’s appeal for A.Y. 2013-14, hence, the same finding given by us therein will be applicable herein as well.
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Hence Ground No. 2.1 and 2.2 for A.Y. 2014-15 are dismissed.
Therefore, ITA No. 617/Ahd/2018 for A.Y. 2014-15 filed by the Revenue is dismissed, and as a result, ITA No. 2089/Ahd/2013 A.Y. 2010-11, ITA No. 1751/Ahd/2016 for A.Y. 2012-13, ITA No. 445/Ahd/2018 filed by the assessee for A.Y. 2013-14 and ITA No. 446/Ahd/2018 for A.Y. 2014-15, these four appeals filed by the assessee are partly allowed for statistical purpose.
The Revenue’s appeals being ITA No. 1968/Ahd/2016 for A.Y. 2012-13, ITA No. 616/Ahd/2018 for A.Y. 2013-14, and ITA No. 617/Ahd/2018 for A.Y. 2014-15 thus stands dismissed.”
