DCM FINANCIAL SERVICES LTD.,NEW DELHI vs. DCIT, NEW DELHI

(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 appeal of Assessee are as under:

“1. On the facts and in the circumstances of the case, the lower authorities have erred in holding that Interest Income of Rs. 3,28,96,012/- is assessable as “Income from Other Sources” under Chapter IV-F of the Incometax Act, 1961 (the Act).

ITA No.- 5541/Del/2016 M/s. DCM Financial Services Ltd. 2) The findings of the Commissioner (Appeals) that Interest Income of Rs. 3,28,96,012/- is assessable under “Income from Other 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 number of earlier assessment years having been assessed as Income from Business, the assessment of the very same Interestn Income as Income from Other Sources is opposed to the “Rule of Consistency”, with 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 the 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 assessee filed copies of orders passed in assessee’s own case, including order dated 21/11/2014 passed by Co-ordinate Bench of ITAT, Delhi in and 3560/Del/2013 for AY 2009-10 and order dated 14/07/2015 passed by Hon’ble Delhi High Court in ITA 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 assessee’s 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 14/07/2015. 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. 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 following aforesaid orders dated 14/07/2015 and 21/11/2014 passed respectively by Hon’ble 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. Accordingly, we set aside the order of Ld. CIT(A) and direct the Assessing officer to assess the interest income of the assessee under the head “Profits & Gains of Business or Profession” in consonance with the aforesaid orders dated 14/07/2015 and 21/11/2015.

(D) Assessee’s appeal is allowed for statistical purposes.

Order was already pronounced in open court on 17/02/2021 after conclusion of hearing.