Britannia Engineering Ltd. v. Dy. CIT

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The Tax Publishers2016 TaxPub(DT) 2129 (Kol-Trib) : (2016) 071 (II) ITCL 0166 Dy. CIT. v. Britannia Engineering Ltd. INCOME TAX ACT, 1961 --Head of income--Business income or income from other sourcesIncome from fixed deposit--Assessee had kept money in fixed deposits which were used to borrow monies by way of overdraft. The interest on FD was offered as business income. AO held it as other sources. CIT(A) held it as business income. *Held:* The holding of FD had nexus with the borrowing activity of the assessee proximately thus, was business income. Income Tax Act, 1961, Section 14 *REFERRED :* CIT v. Lok Holdings (2009) 308 ITR 356 (Bom), CIT v. Indo Swiss Jewels Ltd. (2006) 284 ITR 389 (Bom), CIT v. Vidyut Steel Ltd. (1996) 219 ITR 30 (AP), CIT v. Koshika Telecom Ltd. (Del), CIT v. China Nachimuthu Constructions (2008) 297 ITR 70 (Karn.) and Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT (1997) 227 ITR 172 (SC) FAVOUR : In assessee's favour A.Y. : 2009-10 IN THE ITAT, 'C' BENCH KOLKATA N.V. VASUDEVAN, J.M. & WASEEM AHMED, A.M. D. CIT. v. Britannia Engineering Ltd. ITA No. 475/Kol/2013 & C.O. No. 45/Kol/2013 A.Y. 2009-10 6 April, 2016 Department by: Sanjit Das, JCIT, Sr. DR Assessee by: A.K. Tibrewal, FCA ORDER *N.V. Vasudevan, J.M.* ITA No. 475/Kol/2013 is an appeal by the Revenue against the order dated 17-12-2012 of Commissioner (Appeals) - XXIV, Kolkata relating to assessment year 2009-10. 2. Grounds of appeal raised by the Revenue read as follows :-- '1. The learned Commissioner (Appeals) has erred and not justified in treating the FD interest as business income instead of income from other sources to the tune of Rs. 87,54,636. 2. That the appellant craves leave to add, alter/or amend any of the grounds of appeal during the course of hearing.' SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2016 TaxPub(DT) 2129 (Kol-Trib) : (2016) 071 (II) ITCL 0166

Dy. CIT. v. Britannia Engineering Ltd.

INCOME TAX ACT, 1961

--Head of income--Business income or income from other sourcesIncome from fixed deposit--Assessee had kept money in fixed deposits which were used to borrow monies by way of overdraft. The interest on FD was offered as business income. AO held it as other sources. CIT(A) held it as business income. Held: The holding of FD had nexus with the borrowing activity of the assessee proximately thus, was business income.

Income Tax Act, 1961, Section 14

REFERRED : CIT v. Lok Holdings (2009) 308 ITR 356 (Bom), CIT v. Indo Swiss Jewels Ltd. (2006) 284 ITR 389 (Bom), CIT v. Vidyut Steel Ltd. (1996) 219 ITR 30 (AP), CIT v. Koshika Telecom Ltd. (Del), CIT v. China Nachimuthu Constructions (2008) 297 ITR 70 (Karn.) and Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT (1997) 227 ITR 172 (SC)

FAVOUR : In assessee's favour

A.Y. : 2009-10

IN THE ITAT, 'C' BENCH KOLKATA

N.V. VASUDEVAN, J.M. & WASEEM AHMED, A.M.

D. CIT. v. Britannia Engineering Ltd.

ITA No. 475/Kol/2013 & C.O. No. 45/Kol/2013

A.Y. 2009-10

6 April, 2016

Department by: Sanjit Das, JCIT, Sr. DR

Assessee by: A.K. Tibrewal, FCA

ORDER

N.V. Vasudevan, J.M.

ITA No. 475/Kol/2013 is an appeal by the Revenue against the order dated 17-12-2012 of Commissioner (Appeals) - XXIV, Kolkata relating to assessment year 2009-10.

2. Grounds of appeal raised by the Revenue read as follows :--

'1. The learned Commissioner (Appeals) has erred and not justified in treating the FD interest as business income instead of income from other sources to the tune of Rs. 87,54,636.

2. That the appellant craves leave to add, alter/or amend any of the grounds of appeal during the course of hearing.'