Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Labour Laws
06/09/20264 min read
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Informative
Interest Income is Assessable as Business Income: ITAT directs AO to Assess Interest Income under Head Income from Business [Read Order]
Income Tax
The Mumbai ITAT directed the Assessing Officer to assess interest income under "Income from Business," affirming its assessability as business income. Kamlakant Chhotalal Exporters, engaged in textiles trading and money lending, earned interest, dividends, and gains/loss on shares/derivatives. \r
The AO disallowed Rs.8,60,615 under Section 14A, assessing interest income as "Income from Other Sources" and deeming derivative losses speculative. Claiming Rs.54 lakhs in expenses, the AO disallowed Rs.45,45,312 after reducing the 14A disallowance. The tribunal noted the interest stemmed from money lending, maintaining it as business income. \r
Rejecting the AO's assessment, ITAT directed interest income assessment as "Income from Business," allowing the appeal.
