M/S PATO BUILDERS LTD,JAMSHEDPUR vs. ACIT CIRCLE-2, JAMSHEDPUR

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH “SMC”, RANCHI

BEFORE SH. S.S.GODARA, JUDICIAL MEMBER

ITA No.107/RAN/2018 [Assessment Year: 2008-09] vs M/s. Pato Builders Ltd., ACIT, Ashok Path, Adityapur, Circle-2, Jamshedpur. Jamshedpur-831013. PAN-AABCP7453N (Appellant) (Respondent) Appellant by Sh. Devesh Poddar, Adv. Respondent by Sh. P.K.Mondal, JCIT Date of Hearing 07.01.2019 Date of Pronouncement 09.01.2019

ORDER PER SH. S.S.GODARA, JUDICIAL MEMBER This assessee’s appeal for AY 2008-09 arises against the order dated 03.01.2018 passed by the CIT(A), Jamshedpur in Appeal No.113/JSR/2013-14 in proceedings u/s 143(3)/147 of the Income tax Act, 1961 (in short “Act”). Heard both the parties. Case file perused. 2. The sole substantive dispute between the parties in the instant appeal is about the assessment of taxpayers interest income arising from fixed deposits to the tune of Rs.3,10,193/- is to be assessed as business income or from the other sources. Both lower authorities as well as the Revenue’s strong case is that the same has to be assessed under the latter head only. I find that the assessee has derived the impugned interest income on fixed deposits against the cash credit account only. This Tribunal Co-ordinate Bench decision in ITA No.252/Del/2014 M/s. S.S.Lab vs ITO dated 11.08.2015 holds that such an interest income from C C account has to be assessed under business head only. I, therefore, direct the AO to assess the impugned interest income under the head business income and finalize the necessary computation as per law.

ITA No.107/RAN/2018 [Assessment Year: 2008-09] 3. This assessee’s appeal is allowed in above terms. Order pronounced in the open court on 09.01.2019.

Sd/- (S.S.GODARA) JUDICIAL MEMBER

Date:- 09.01.2019 *Amit Kumar*