PROMAIN LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This is a writ petition filed by the Petitioner challenging the order dated 19th December, 2014 passed by the Income Tax Appellate Tribunal (ITAT) in M.A. No. 06/Del/2013 in ITA No. 427/Del/2010 under Sec. 254(2) of the Income Tax Act, 1961 ('Act') for the Assessment Year ('AY') 2006 -07.

(2.) The background facts are that the Petitioner is a public limited company incorporated under the Companies Act, 1956 and is carrying on the business of investment, finance and trading. From the details placed on record, it is seen that from the Assessment Year (AY) 1999 -2000 onwards, the Assessee has been filing returns declaring its sources income as dividend income, rental income, interest income and "Vyaj Badla". In some AYs, the Petitioner earned income from "Vyaj Badla". However, in all the AYs from AY 1999 -2000 onwards up to AY 2012 -13, the Petitioner earned interest income. The interest income earned by the Assessee, even in a particular AY when it did not earn any income from the Vyaj Badla business, has been treated as business income.

(3.) Aggrieved by the order of the Assessing Officer (AO) treating the interest income earned during the AY 2006 -07 as income from other sources and not as business income, the Assessee filed an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)]. In the order dated 26th November 2009 dismissing the appeal, the CIT(A) did not specifically deal with the issue of interest income being treated as business income.