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Informative

Family Business of Money Lending for 20 Years: ITAT upholds Addition of Excess Income as ‘Business Income’

Update / Judgement Date

14 Jul 2024

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Appeal Against OrderIncome TaxOther Legal Matters

The Kolkata bench of the Income Tax Appellate Tribunal (ITAT) upheld the addition of excess income as business income for a family engaged in money lending for 20 years. The tribunal ruled that interest accrued on loans is taxable as business income under the Income Tax Act, 1961. The case centered on the consistent pattern of money lending, which the ITAT deemed a business activity, leading to the decision to treat the accrued interest as business income rather than personal income.