DCM Financial Services Ltd., New Delhi V. DCIT, New Delhi

ITA 5541/DEL/2016

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 2471 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 3 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 27-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Rule of consistency; Set aside

Judgement Text

ITA NO.- 5541/DEL/2016 M/S. DCM FINANCIAL SERVICES LTD. PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: B: NEW DELHI) (THROUGH VIDEO CONFERE NCING) BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEM BER ITA NO:- 5541/DEL/2016 ( ASSESSMENT YEAR: 2012-13) DCM FINANCIAL SERVICES LTD. D 7/3, MEZZANNINE FLOOR, OKHALA INDUSTRIAL AREA, NEW DELHI. VS. DCIT CIRCLE-7(1), OKHLA INDUSTRIAL AREA NEW DELHI PAN NO: AAACD0106F APPELLANT RESPONDENT REVENUE BY : SH. AVIKAL MANU, SR. DR ASSESSEE BY : SH. SANJAY VOHRA, CA PER ANADEE NATH MISSHRA, AM (A) THIS APPEAL BY ASSESSEE IS FILED AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS)- 37, NEW DELHI, [LD. CIT(A), FOR SHORT], DATED 29.08.2016 FOR ASSESSMENT YEAR 2012-13. GROUNDS TAKEN IN THIS APP EAL OF ASSESSEE ARE AS UNDER: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE LOWER AUTHORITIES HAVE ERRED IN HOLDING THAT INTEREST INCOME OF RS. 3 ,28,96,012/- IS ASSESSABLE AS INCOME FROM OTHER SOURCES UNDER CHA PTER IV-F OF THE INCOMETAX ACT, 1961 (THE ACT). ITA NO.- 5541/DEL/2016 M/S. DCM FINANCIAL SERVICES LTD. PAGE 2 OF 4 2) THE FINDINGS OF THE COMMISSIONER (APPEALS) THAT INTEREST INCOME OF RS. 3,28,96,012/- IS ASSESSABLE UNDER INCOME FROM OTHE R SOURCES IS CONTRARY TO THE DECISION OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF THE APPELLANT FOR EARLIER ASSESSMENT YEAR. 3) SIMILAR INTEREST INCOME OF THE APPELLANT FOR A N UMBER OF EARLIER ASSESSMENT YEARS HAVING BEEN ASSESSED AS INCOME FR OM BUSINESS, THE ASSESSMENT OF THE VERY SAME INTERESTN INCOME AS INC OME FROM OTHER SOURCES IS OPPOSED TO THE RULE OF CONSISTENCY, WI TH NO CHANGE IN THE FACTUAL POSITION THERETO. 4) THE ABOVE GROUNDS OF APPEAL ARE INDEPENDENT AND WITHOUT PREJUDICE TO ONE ANOTHER. YOUR APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND OR WITHDRAW ANY OF THE GROUNDS OF APPEAL AT THE TIME OF HEARING. (B) THE ONLY ISSUE IN DISPUTE IN THIS APPEAL IS WHETHER THE INTEREST INCOME OF RS. 3,28,96,012/- IS ASSESSABLE UNDER THE HEAD INCOME FROM OTHER SOURCES [ AS HELD BY THE ASSESSING OFFICER AND BY LD. CIT(A)] OR UNDER T HE HEAD PROFITS & GAINS OF BUSINESS OR PROFESSION, AS CLAIMED BY THE ASSESSEE. DURING THE APPELLATE PROCEEDINGS IN INCOME TAX APPELLATE TRIBUNAL (ITAT, FOR SHORT) THE ASS ESSEE FILED COPIES OF ORDERS PASSED IN ASSESSEES OWN CASE, INCLUDING ORDER DATED 21/11/20 14 PASSED BY CO-ORDINATE BENCH OF ITAT, DELHI IN ITA NO. 3041 AND 3560/DEL/2013 FOR A Y 2009-10 AND ORDER DATED 14/07/2015 PASSED BY HONBLE DELHI HIGH COURT IN IT A NO. 387/2015. IN THE AFORESAID ORDERS DATED 21/11/2014 AND 14/07/2015; IT WAS HELD , AS CLAIMED BY THE ASSESSEE, THAT THE ASSESSEES INTEREST INCOME IS ASSESSABLE UNDER HEAD PROFIT & GAINS OF BUSINESS OR PROFESSION. AT THE TIME OF HEARING BEFORE US, BOTH SIDES HAVE AGREED THAT THE ISSUE IN DISPUTE IN THE PRESENT APPEAL BEFORE US IS COVERED IN FAVOUR OF THE ASSESSEE AND AGAINST REVENUE, BY AFORESAID ORDERS DATED 21/11/2014 AND 1 4/07/2015. NEITHER SIDE HAS BROUGHT ANY DISTINGUISHING MATERIALS FOR AY 2012-13 (TO WHICH THIS APPEAL PERTAINS) AS ITA NO.- 5541/DEL/2016 M/S. DCM FINANCIAL SERVICES LTD. PAGE 3 OF 4 COMPARED WITH AY 2009-10 TO WHICH AFORESAID ORDERS DATED 21/11/2014 AND 14/07/2015 PERTAIN. (C) IN VIEW OF THE FOREGOING, AND RESPECTFULLY FOL LOWING AFORESAID ORDERS DATED 14/07/2015 AND 21/11/2014 PASSED RESPECTIVELY BY HO NBLE HIGH COURT AND BY CO- ORDINATE BENCH OF ITAT, DELHI; WE DECIDE THE ISSUE IN DISPUTE IN THE PRESENT APPEAL IN FAVOUR OF THE ASSESSEE AND AGAINST REVENUE. ACCORDI NGLY, WE SET ASIDE THE ORDER OF LD. CIT(A) AND DIRECT THE ASSESSING OFFICER TO ASSESS T HE INTEREST INCOME OF THE ASSESSEE UNDER THE HEAD PROFITS & GAINS OF BUSINESS OR PROF ESSION IN CONSONANCE WITH THE AFORESAID ORDERS DATED 14/07/2015 AND 21/11/2015. (D) ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PU RPOSES. ORDER WAS ALREADY PRONOUNCED IN OPEN COURT ON 17/02 /2021 AFTER CONCLUSION OF HEARING. SD/- SD/- (AMIT SHUKLA) (AN ADEE NATH MISSHRA) JUDICIAL MEMBER ACCOUN TANT MEMBER DATED: 18/02/2021 *BR* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT