JABALPUR DEVELOPMENT AUTHORITY,JABALPUR vs. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 2(1), JABALPUR

ITA 66/JAB/2018Status: DisposedITAT Jabalpur22 September 2026AY 2014-1519 pages
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What were the facts?

The Jabalpur Development Authority, a state-owned entity, filed returns declaring losses. The Assessing Officer rejected the books of accounts and estimated income at 18% of net receipts, also taxing interest income under 'Income from Other Sources'. The CIT(A) reduced the net profit estimation to 3% and treated interest income as business income.

What did the Tribunal hold?

The Tribunal upheld the rejection of books but restricted the net profit estimation. It also ruled that interest income earned from short-term deposits and customer installments should be taxed under 'Income from Other Sources' as the assessee was not engaged in money lending or financial business.

What were the issues?

Whether the rejection of books of accounts was justified and what is the correct head of income for interest earned by the assessee.

Which sections of the Income-tax Act were involved?

Section 145(3),Section 56(2),Section 28

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JABALPUR BENCH, MP

Before: HON’BLE SHRI KUL BHARAT & SHRI G.D. PADMAHSHALI

For Appellant: Mr. Anil Kumar Gupta [‘Ld. AR’]
For Respondent: Mr. Dhananjay Wanjari [‘Ld. DR’]
Pronounced: 22/09/2026

PER G. D. PADMAHSHALI; The captioned six cross appeals, thr

The order continues below.

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